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THE  LIBRARY 

OF 

THE  UNIVERSITY 

OF  CALIFORNIA 

HENRY  RAND  HATFIELD 
MEMORIAL  COLLECTION 


PRESENTED  BY 

FRIENDS  IN  THE  ACCOUNTING 

PROFESSION 


/^^^'^^-c.c^c-a: 


STEVENSON'S 


INTRODUCTORY 


BOOKKEEPING. 


TEXT-BOOK  ON  ACCOUNTING, 


FOR 


Public  Schools,  Academies,  Normal  Schools,  and  Teachers'  Institutes. 


BY 

WILLIAM  C.  STEVENSON, 

DEPARTMENT  OF  BOOKKEEPING  AND  PENMANSHIP, 
KANSAS  STATE  NORMAL  SCHOOL. 


SECOND    EDITION. 


J.  S.  PARKS,  Publisher, 

TOPEKA.  KANSAS. 

1899. 


Copyright,  1897, 
By  WILLIAM  C.  STEVENSON, 


HFs63Sr 


PREFACE. 


THIS  book  is  the  result  of  years  of  teaching,  and  is  fresh  from  the  class-room.  It  is  based  upon 
the  idea  that  the  student  should  be  taught  to  be  a  thinking,  acting  being,  rather  than  an 
automaton,  performing  certain  processes  by  rule.  As  a  branch  of  mathematics,  bookkeeping  should 
train  the  reasoning  powers,  and  be  productive  of  acuteness,  method,  accuracy,  and  speed.  As  a  de- 
partment of  political  economy,  bookkeeping  should  direct  the  thought  of  the  pupil  to  those  great 
human  activities  in  trade,  commerce  and  accumulation  which  are  such  important  elements  in  the 
happiness  and  well-being  of  the  world. 

Mathematics  is  generally  regarded  as  an  abstruse  and  theoretical  subject,  yet  it  is  applied  in 
all  the  business  activities  of  life.  Too  often  men  of  high  scholastic  attainments  discover  that  they 
lack  the  first  principles  of  business  success.  They  have  given  no  attention  to  business  customs 
and  usages,  and  are  helpless  in  their  business  affairs.  Bookkeeping  combines  much  of  business 
usage  with  the  application  of  mathematical  principles,  and  gives  an  opportunity  to  the  teacher  to 
shape  to  a  very  great  extent  the  future  business  tendencies  of  the  student.  No  one  in  any  walk  of 
life  can  afford  to  be  without  a  record  of  his  business  dealings.  Books  to  a  business  are  as  neces- 
sary as  chart  and  compass  to  a  sailor.  He  who  does  without  a  systematic  set  of  books  is  unwise, 
and  the  day  will  probably  come  when  he  will  regret  most  bitterly  his  lack  of  foresight  and  business 
prudence. 

The  author  believes  that  a  study  of  business  principles  is  a  moral  training,  as  great  if  not 
greater  than  much  which  is  popularly  so  considered.  Right  relations  between  individuals  lead  to 
true  moral  insight  and  right  moral  dispositions.  It  is  a  deplorable  fact  that  it  is  easier  to  find 
teachers  for  the  young  and  preachers  for  the  people  than  to  find  men  who,  in  financial  matters,  are 
reliable  and  trustworthy.  Practical  honesty  is  too  rare  a  virtue,  and  the  worst  of  it  is  that  the 
classes  who  stand  highest  in  the  public  esteem  as  exemplars  of  the  moral  virtues  are  often  the  most 
lax  and  uncertain  in  their  ideas  of  duty  to  their  fellow  men  in  matters  of  dollars  and  cents,  and  too 
often  it  is  very  hard  to  get  them  to  pay  their  current  bills,  and  harder  yet  to  arouse  a  sense  of  re- 
sponsibility for  their  older  debts.  Too  many  people  called  good,  and  who  really  are  good  in  many 
respects,  have  a  way  of  unconsciously  regarding  borrowed  money  or  goods  purchased  on  credit  as 
a  distinct  gain  instead  of  the  basis  of  a  solemn  obligation.  The  teacher  of  bookkeeping  has  an 
opportunity  to  teach  honesty  without  the  students  knowing  it,  for  he  who  is  systematic,  accurate 
and  prompt  is  quite  likely  to  be  industrious,  and  the  industrious  are  seldom  dishonest. 

Most  American  boys  begin  and  end  life  by  spending  their  earnings  as  they  go.  Our  boys, 
when  placed  side  by  side  with  the  German,  the  Jew  and  other  immigrant  boys,  are  too  often  pushed 
to  one  side  in  the  struggle.  Hence  foreigners  pronounce  us  a  spendthrift  nation,  and  the  evidence 
seems  to  support  their  assertion.  It  is  fully  time  now  that  the  schoolboy  should  be  taught  and 
made  to  understand  that  it  is  not  what  a  man  earns,  but  what  he  saves,  that  will  raise  him  to  a 
competency.  Teach  a  boy  to  practice  economy  in  his  youth,  and  you  do  more  than  all  the  lecturers 
who  condemn  the  vices  of  intemperance,  or  who  simply  talk  for  thrift,  restraint,  reform,  and  correct 

(3) 

M513241 


4  STEVENSON  S    INTKODUCTOEY    BOOKKEEPING. 

living.  The  keeping  of  a  systematic  set  of  books  by  a  youth,  the  same  being  open  to  inspection 
by  parents  and  teachers,  would  lead  to  self-restraint  in  very  many  ways,  and  inculcate  habits  of  the 
greatest  value. 

This  book  endeavors  to  combine  theory  and  practice,  and  the  student  is  led  by  degrees  to  un- 
derstand and  appreciate  the  shortest  methods.  The  student  is  given  much  help  at  first,  but  is 
gradually  led  to  rely  upon  himself,  and  the  work  is  made  more  and  more  difficult  as  his  strength 
increases. 

It  is  the  hope  of  the  author  that  success  may  attend  the  use  of  the  book  in  the  schoolroom, 
and  that  the  principles  learned  may  stimulate  the  students  during  a  long  life  to  the  practice  of  the 
virtues  of  accuracy,  promptness,  industry,  thrift,  practical  honesty,  and  business  sense. 

W.  C.  S. 


TABLE  OF  CONTENTS. 


PAGE. 

Abbreviations 141 

Acceptances  illustrated 45,  49,    50 

Account  defined 8 

Account  sales 117 

Accounts  showing  losses  and  gains 9 

Adjustment  of  wrong  entries 28 

Allowance  or  causal  accounts 9 

Auxiliary  books  defined 8 

Balance  Sheet  illustrated 26 

Bank  account 38 

Bank  drafts 51 

Bill,  itemized  and  receipted 42 

Bill  Books,  forms 70,     71 

Bills  Receivable  account  defined 32 

Bills  Receivable  account  illustrated 23 

Bills  Receivable  and  Bills  Payable  defined 9 

Blotter,  Single  Entry 127 

Book  and  stationery  business  set 131 

Bookkeeping  defined 8 

Bookkeeping  systems.  Double  Entry 8 

Single  Entry 8,  125 

Business  terms  defined 142 

Cash  account  defined 9 

Cash  account  illustrated 21 

Cash  Book  with  bank  columns 89,    90 

Cash  Book  illustration 68,     69 

Cash  Book,  Single  Entry 127 

Cash-Journal  defined 97 

Cash- Journal  rulings 76 

Causal  accounts  defined 9 

Changing  Single  to  Double  Entry 126 

Check,  certified 45 

Checks  illustrated 38,    45 

Check  marks 15 

Closing  the  Ledger Ip 

Coal  dealer's  set 102 

Commission , 115 

Commission  business 119-124 

Consignment  accounts 116 

Date  of  maturity  on  notes  and  bills 32 

Day  Book  defined 8 

Day  Book  illustrated 17 

Days  of  grace 32 

Debit  and  credit  defined 8 

Debtor  and  creditor  defined 8 

Definitions 8,  9,  15,  142 

Deposit  slip  illustrated 73 

Directions  to  the  student 7 

Directions  to  the  teacher 6 

Discount,  computing  of 31 

Double  Entry  defined 8 

Drafts  defined 49 

Drafts  illustrated 49-52 

Due-bill 54 

Errorp,  and  how  to  correct  them 28 

Examination  tests 139 

Expense  account  defined 9 

Expense  account  illustrated 21 

Explanation  column  in  Ledger 23 

Farming  sets 34,     78 


PAGE. 

Forms  of  Journal  entries 11 

Fundamental  principle  of  Double  Entry 11 

Gain  defined 8 

General  merchandise  set 121 

Indorsements .  .^ 48 

Interest  defined 9 

Interest  and  Discount,  to  calculate 31 

Inventories 15 

Invoice  Book  defined 81 

Invoice  Book  illustrated 85 

Journal  defined 8 

Journalizing  defined 8 

Journal  forms 106-113 

Journal,  simple  form 19 

Journal-Day  Book,  or  Itemized  Journal 59 

Laws  of  debits  and  credits 10 

Ledger  index 15 

Ledger  defined 8 

Ledger  closing,  purpose  and  plan 8,  15,    16 

Ledger,  when  to  close 16 

Ledger,  what  accounts  to  close 16 

Letter  of  Credit 53 

Liability  defined 8 

Liability  inventory 15 

Loss  defined 8 

Loss  and  Gain  account  illustrated 23 

Merchandise  account  defined 9 

Miscellaneous  sets 135-138 

Model  set 13-26 

Notes  illustrated 46,    47 

Order  for  goods 54 

Partners'  accounts 57 

Partnership  formations 58,     61 

Personal  accounts 9 

Posting  defined 8 

Poultry  business  set 134 

Principal  books  defined 8 

Principles  of  debit  and  credit 10 

Property  accounts  . .   9 

Proprietor's  account  illustrated 23 

Reading  of  Journal  entries 11 

Receipts 54 

Resource  defined 8 

Retail  dry-goods  set 44 

Results  shown  by  accounts 9 

Ruling  accounts 16 

Sales  Book 81,    84 

Seed  business  set 60 

Shipments  and  consignments  defined 116 

Shipment  and  consignment  set 119 

Single  Entry 125 

Six-column  Journal 107 

Skeleton  Ledger 43 

Statement  of  Resources  and  Liabilities,  Losses 

and  Gains 24,    25 

Students'  sets 14,  29,  30,  124 

Tea,  coffee  and  spice  sets 81,    92 

Trial  Balance  illustrated 24 

Use  of  red  ink 6 

Wholesale  and  retail  carpet  set 73 


TO  THE  TEACHER. 


YouK  attention  is  called  to  the  following  points,  that  you  may  the  better  understand  the  plan 
of  this  text  and  be  able  to  teach  it  to  the  greatest  advantage : 

1.  The  book  is  not  divided  into  lessons,  with  a  definite  amount  of  work  prescribed  for  each  day. 
It  is  better  to  set  the  time  which  the  pupils  shall  work  on  the  subject  daily,  and  thus,  by  skilfully 
holding  back  the  very  rapid  workers  and  awakening  the  ambition  of  the  plodders,  a  general  aver- 
age can  be  obtained  which  will  enable  your  class  to  do  the  greatest  possible  amount  of  work  in  a 
given  time. 

2.  The  "  Teacher's  Reference  Book  "  contains  all  of  the  sets  worked  out  for  your  benefit.  The 
teacher  of  bookkeeping  cannot  do  this  work  without  much  unnecessary  labor.  It  would  be  well  to 
tell  the  pupils  that  you  have  such  a  book,  and  why  it  is  necessary  to  you,  and  why  it  is  not  best  for 
them  to  have  one. 

3.  Upon  the  thoroughness  of  your  drill  on  the  eight  principles  depends  your  success  and  that 
of  your  class.     Insist  on  the  why,  and  avoid  the  too  common  method  of  learning  the  how  only. 

4.  The  discontinuance  of  red  ink,  while  not  insisted  upon,  is  strongly  advised.  Progressive 
bookkeepers  everywhere  are  discarding  red  ink  altogether,  as  they  did  the  filling  out  of  the  expla- 
nation columns  of  the  Ledger  years  ago.  A  question  regarding  any  item  in  the  Ledger  will  necessi- 
tate a  turning  back  to  the  original  entry.  Red  ink  is  only  of  advantage  in  being  more  easily  seen, 
which  object  is  gained  as  effectually  by  a  change  in  the  style  of  writing,  and  without  a  loss  of  time. 

5.  This  is  an  introductory  bookkeeping,  and  hence  does  not  contain  everything.  Teachers 
should  own  several  other  texts  and  a  book  on  commercial  law. 

6.  By  making  a  collection  of  actual  business  forms  and  keeping  them  in  a  school  scrap-book, 
the  interest  and  value  of  the  work  in  bookkeeping  will  be  greatly  enhanced. 

7.  Original  sets  by  the  students,  which  are  first  worked  out  by  themselves  and  then  given  to 
other  students  for  the  same  purpose,  with  a  final  comparison  of  results,  will  stimulate  the  dullest 
class  to  activity  and  enthusiasm. 

8.  The  drill  on  the  principles  of  debit  and  credit  can  be  from  Journal  to  Day  Book  as  well  as 
from  Day  Book  to  Journal.  The  teacher  makes  a  journal  entry  at  random,  being  sure  to  have  the 
debits  and  credits  equal,  and  the  student  then  writes  out  the  day-book  entry  and  explains  it  by 
reference  to  the  eight  principles. 

9.  The  blank  books  to  be  used  in  connection  with  this  text  were  prepared  especially  for  that 
purpose,  and  on  the  covers  will  be  found  directions  to  the  students  that  will  very  much  help  the 
teacher  to  get  uniformity  in  the  work. 

10.  It  is  possible  that  a  few  errors  have  crept  into  the  first  edition.  Teachers  will  confer  a 
favor  by  writing  the  author  regarding  anything  that  will  add  to  the  usefulness  of  the  book. 

11.  Teachers  are  urged  to  make  this  study  practical  —  not  formal,  routine,  book  work.  Look 
about  and  find  the  lack  of  business  methods,  system,  and  punctuality,  and  the  prevalence  of  use- 
less money-spending  as  well  as  time-wasting.  Let  the  effect  of  your  teaching  of  bookkeeping 
reach  the  homes  and  lives  of  your  pupils. 


(6) 


TO  THE  STUDENT. 


The  following  directions  may  be  of  use  to  you  if  you  choose  to  make  them  so.  Some  people 
get  their  knowledge  from  experience  and  some  are  wise  enough  to  profit  by  the  experience  of  others. 

1.  Do  nothing  carelessly  or  hurriedly. 

2.  Be  very  particular  regarding  the  details  —  the  little  things. 

3.  Do  not  trust  to  memory  what  should  be  in  writing. 

4.  Put  in  writing  all  directions  and  facts  for  future  reference.  A  pocket  memorandum  is  the 
best  friend  of  the  mind. 

5.  Be  frank  with  all,  yet  keep  your  plans  and  views  largely  to  yourself.  You  were  given  two 
eyes,  two  ears  and  one  tongue  that  you  might  see  and  hear  twice  as  much  as  you  say. 

6.  Have  a  place  for  everything  and  everything  in  its  place  —  not  a  place  for  everything  and 
everything  in  it. 

7.  Have  stated  times  in  which  to  do  particular  things. 

8.  Consider  an  error  once  made,  a  mistake,  but  made  the  second  time,  a  sin. 

9.  Do  not  postpone  until  to-morrow  what  can  as  well  be  done  to-day. 

10.  Consider  a  correction,  suggestion  of  error,  or  even  a  reprimand  from  a  superior,  to  be  a 
personal  compliment  to  your  ability  to  improve. 

11.  When  working  on  the  books  frequently  turn  back  and  reread  these  special  points,  which 
will  save  your  teacher  much  work  and  warn  you  of  the  dangerous  places  in  your  pathway. 

(a)  Good  figures  are  absolutely  necessary  to  good  bookkeeping.  You  can  aJBPord  to  work  for 
two  days  on  the  ten  figures,  and  longer  if  necessary.  They  must  be  made  rapidly  and  with  a  free, 
elastic  movement.  Call  on  the  principal  bookkeeper  in  your  town,  examine  his  books,  and  have 
him  make  you  some  figures. 

{b)  Your  writing  must  be  rapid,  plain,  and  easily  written. 

(c)  In  ruling,  hold  the  ruler  so  that  it  will  not  blot  the  paper  when  the  line  is  drawn. 

{d)  Observe  uniformity  in  ruling  —  lines  opposite  on  sides  of  Ledger,  opposite  on  pages  of 
Cash  Book,  and  at  same  places  on  Journal  pages. 

(e)  Lead-pencil  footings,  small,  and  light,  precede  all  ink  totals. 

(f)  Go  over  every  computation  twice  before  making  the  permanent  record.  Hasten  slowly 
at  first. 

{g)  Consult  your  teacher  only  when  you  are  lost  and  have  made  a  strong  effort  to  find 
yourself. 

(A)  Be  ambitious  to  make^our  books  the  neatest,  most  business  like,  and  most  accurate  set 
in  the  school. 


(7) 


PREPARATORY  DEFINITIONS. 


1.  Bookkeeping  is  recording  the  facts  of  a  business.  It  should  be  systematic,  brief,  complete, 
and  easily  interpreted. 

2.  There  are  two  kinds  of  bookkeeping  in  general  use,  Double  and  Single  Entry.  Single 
Entry  is  simply  a  contraction  of  Double  Entry.  In  Double  Entry,  accounts  are  kept  with  Persons, 
Property,  and  Causes,  while  in  Single  Entry  accounts  are  kept  with  Persons  only. 

3.  Money  is  a  measure  of  value.  Governments  have  provided  it  for  ages  to  enable  the  people 
to  make  exchanges  of  values.  In  bookkeeping,  everything  recorded  is  reduced  to  the  money  meas- 
ure of  dollars  and  cents. 

4.  Debtor  is  the  term  applied  to  a  Person  who  owes,  or  to  Property  or  Cause  which  has  cost 
value. 

5.  Debit  is  the  act  of  showing  the  condition  of  being  Debtor,  or  is  a  recorded  item  of  debt. 

6.  Creditor  is  the  term  applied  to  a  Person  who  is  owed,  or  to  a  Property  or  Causal  account 
which  has  produced  value. 

7.  An  Account  is  a  grouping  of  debits  and  credits  of  the  same  kind  under  their  common  head. 

8.  A  Resource  is  anything  of  value  in  one's  possession,  or  amounts  due  from  others. 

9.  A  Liability  is  what  one  owes,  whether  on  account  or  in  the  form  of  a  written  promise  to  pay. 

10.  A  Loss  is  the  excess  of  the  cost  over  the  selling  price,  or  a  decrease  in  value. 

11.  A  Gain  is  the  excess  of  the  selling  price  over  the  cost,  or  an  increase  in  value. 

12.  The  books  used  in  the  simplest  form  of  Double  Entry  bookkeeping  are  called  Day  Book, 
Journal,  and  Ledger.  Books  are  often  divided  into  two  classes,  Principal  and  Auxiliary.  Princi- 
pal books  are  the  Ledger  and  any  other  books  from  which  posting  is  done.  Almost  any  book  may 
be  a  principal  book.  The  posting  is  sometimes  done  from  Check  Book  stub.  Bill  Book,  Receipt 
Book  stub,  and  Order  Book,  although  usually  from  Itemized  Journal,  Cash  Book,  Sales  Book,  or 
Invoice  Book.  Auxiliary  books  are  those  used  for  reference  merely,  and  not  posted  from,  as  the 
Bills  Payable  Book,  Bills  Receivable  Book,  Order  Book,  Receipt  Book,  Check  Book,  Bank  Pass 
Book,  etc.  Books  are  sometimes  divided  into  Books  of  Original  Entry  and  Books  of  Subsequent 
Entry.  The  book  of  original  entry  is  taken  as  the  best  evidence  in  a  court  of  law.  The  slip  of 
paper  on  which  a  clerk  in  one  of  our  modem  stores  writes  the  facts  of  a  purchase,  is  really  the  book 
of  original  entry.  In  some  stores  the  clerks  are  provided  with  books  called  Blotters  or  Scratchers 
in  which  to  make  their  entries,  and  from  which  the  bookkeeper  at  stated  intervals  writes  up  the 
main  books  of  the  business. 

13.  The  Day  Book  is  the  book  of  original  entry,  and  contains  a  statement  of  each  business 
transaction  in  detail. 

14.  The  Journal  contains  the  debits  and  credits  found  in  each  transaction  in  the  Day  Book, 
arranged  in  convenient  form  for  transferring  to  the  Ledger.  Determining  the  debits  and  credits 
and  placing  the  same  in  the  Journal  is  called  Journalizing.  The  left  column  contains  debit 
items  and  the  right  column  items  of  credit. 

15.  The  Ledger  contains  the  accounts,  which  consist  of  a  collection  of  the  debits  and  credits 
of  the  same  name  grouped  under  their  common  head.     The  left  side  of  each  account  is  the  debit, 

(8) 


STEVENSON  S  INTRODUCTORY  BOOKKEEPINa. 


9 


the  right  side  the  credit.  Posting  is  the  process  of  carrying  the  debits  and  credits  from  the  Journal 
to  the  various  accounts  in  the  Ledger.  The  Ledger  is  "  closed "  when  the  accounts  are  balanced 
or  made  to  show  their  true  condition  in  the  simplest  form.  This  may  be  done  at  any  time,  de- 
pending upon  the  business  and  its  requirements. 

16.  Personal  accounts  are  a  grouping  of  the  debits  and  credits  relating  to  persons.  John 
Smith's  account  is  a  grouping  of  John  Smith's  debits  and  credits  from  the  point  of  view  of  the 
person  keeping  the  account. 

17.  Property  accounts  are  a  grouping  of  the  debits  and  credits  relating  to  Property. 

18.  Causal  accounts  are  a  grouping  of  the  debits  and  credits  relating  to  abstract  causes  of 
receipts  and  expenditures,  such  as  Interest,  Discount,  Charity,  Exchange,  Expense,  Church,  etc. 

Note. — For  complete  definitions  of  business  terms,  see  "Business  Terms  Defined." 


Kinds. 


Sesults. 


CLASSES  OF  ACCOUNTS  AND  RESULTS  SHOWN  BY  THEM. 

Accounts  maybe  grouped  into  three  classes  with  respect  to  kind,  viz.:   Personal,  Property 
and  Causal  accounts. 

All  accounts  show  one  or  two  of  the  following-named  results:  Resource,  Liability,  Loss,  Gain. 

f   1.   Personal. —  Usually  show  Resource  or  Liability,  but  may  show  Loss  or  Gain. 

Property. — Usually  show  Resource  and  Loss  or  Gain. 

Causal. — Usually  show  Loss  or  Gain,  but  may  show  Resource  or  Liability. 

Resource. —  Shown  in  Personal,  Property  or  Causal  accounts. 

Liability. —  Shown  in  Personal  or  Causal  accounts. 

Loss. —  Shown  in  Personal,  Property  or  Causal  accounts. 

Gain. —  Shown  in  Personal,  Property  or  Causal  accounts. 

Personal. — John  Smith,  or  any  other  person. 
Accounts.  -^  2.  Property. — Mdse.,  which  is  a  general  term  used  to  include  many  and  various  articles 

of  trade;  Cash,  representing  money  or  equivalents  of  money;  Bills  Receivable, 
representing  notes  of  other  people  in  our  possession ;  Bills  Payable,  our  written 
promises  to  pay;  Pencils,  a  division  of  Mdse.  account,  and  representing  a  partic- 
ular kind  of  property;  Books,  representing  a  division  of  Mdse.;  No.  1017  Me- 
chanics St. ;  Sunny  Slope  Farm ;  Branch  Store,  Merchants  St. ;  Railroad  Stock 
Bull  Hill  Mining  Shares;  Electric  Street-Railway  Shares;  Shipment  No.  25 
Risk  Wheat  Option,  K.  C;  Venture,  R.  Est.,  Wichita;   Consignment  No.  4 
Orchard;  Strawberry  Patch  No.  2;  Apiary;  Confectionery;  Groceries,  etc.,  etc. 

Causal. —  Interest,  representing  the  cause  for  the  payment  or  receipt  of  value ;  Ex- 
pense, representing  all  outlays  from  which  no  direct  return  is  expected  ;  Luxury, 
a  division  of  Expense,  and  denoting  a  particular  kind  of  Expense ;  Work,  repre- 
senting the  cause  for  certain  receipts  or  expenditures ;  Sunday-School,  a  division 
of  Expense  account,  and  showing  a  particular  kind  of  Expense;  Discount,  show- 
ing the  cause  of  allowances  made  to  or  by  us;  Labor;  Wages;  Good  Will; 
Salary;  Clothing,  when  bought  for  personal  use  and  not  as  an  investment; 
Board;  Room;  Transportation;  Tobacco;  Confectionery;  Groceries,  etc.,  etc. 


Names.    < 


THE  EIGHT 
PRINCIPLES  OF  DEBIT  AND  CREDIT. 


These  may  be  memorized,  but  it  is  much  better  for  the  student  to  develop  them  as  follows, 
using  his  reasoning  faculties  rather  than  his  memory : 

If  a  debtor  is  one  who  owes,  and  debit  is  the  act  of  showing  the  condition  of  being  in  debt, 
then, 

t. — Debit  persons  when  they  get  into  our  debt. 
This  being  true,  and  all  relations  being  expressed  in  debits  or  credits,  then, 

2.— Credit  persons  when  they  get  out  of  our  debt. 
If  this  is  true,  then, 

3.— Debit  persons  when  we  get  out  of  their  debt. 
If  this  is  true,  then  it  follows  that  we 

4. —  Credit  persons  when  we  get  into  their  debt. 
If  we  get  into  a  person's  debt  for  property  bought  of  him,  the  property  has  gotten  into  our^debt 

for  the  same  amount;  hence, 

5.— Debit  property,  when  purchased,  with  its  cost. 
If  the  property  is  considered  as  getting  into  our  debt  when  bought,  then  when  sold  it  gets  out  of 

our  debt  for  what  it  produces;  hence, 

6. —  Credit  property,  when  disposed  of,  w^ith  its  selling  price. 

If  property  is  credited  when  disposed  of,  and  the  reason  for  its  disposal  is  not  an  exchange  for 
other  property,  nor  a  loan  to  a  person,  nor  a  payment  to  a  person  for  a  debt  owed,  but  as  an 
allowance  for  a  cause,  then  the  Cause  should  be  debited,  as  it  is  debtor  to  the  business;  hence, 
7. —  Debit  causes  when  tliey  cost  us  value. 

And  it  follows  as  a  necessity  that  we  must 

8. —  Credit  causes  w^hen  they  produce  value. 

Note. —  It  is  not  only  useless  to  attempt  to  reduce  these  principles  to  one  or  two  embodying  them  all,  but  is 
confusing  to  the  student  as  well.  These  principles  are  within  the  comprehension  of  any  one,  and  if  well  learned 
by  a  process  of  development,  the  student  will  never  be  troubled  in  journalizing  any  transaction. 

Notice  the  following  development  of  the  eight  principles,  and  in  what  respect  it  dilSers  from 

the  other : 

The  general  law  of  Double  Entry  is,  that  every  debit  has  its  corresponding  credit.  As  all  relations 
are  expressed  in  debits  or  credits,  opposite  relations  or  conditions  demand  opposite  treatment. 

By  definition,  a  debtor  is  one  who  owes,  and,  by  definition,  debit  is  the  act  of  showing  the  condi- 
tion of  being  debtor;  hence  — 

1.  Debit  Persons  when  they  get  into  our  debt; 
and  it  follows  that  we  must 

2.  Credit  Persons  when  they  get  out  of  our  debt; 
and  hence  it  is  necessary  to 

3.  Debit  Persons  wheij  we  get  out  of  their  debt; 
and  of  necessity  we  must 

4.  Credit  Persons  when  we  get  into  their  debt; 

(10) 


STEVENSON  S    INTRODUCTOKY    BOOKKEEPING. 


11 


And  as  every  debit  has  its  credit,  when  we  buy  property  on  account,  as  we  are  required  to 
credit  the  person  by  No.  4,  it  is  necessary  to  debit  the  property ;  hence, 

5.  Debit  Property  when  received; 
and  it  follows  that  we 

6.  Credit  Property  when  disposed  of; 

and  if  we  dispose  of  the  property  for  a  cause,  abstract  or  otherwise  (and  in  every  transaction 
the  debits  and  credits  must  be  equal),  it  is  plain  to  see  that  we  must 

7.  Debit  Causes  when  costing  value  ; 
and  it  follows  that  we  must 

8.  Credit  Causes  when  they  produce  value. 

By  applying  the  principles  of  debit  and  credit  to  a  number  of  transactions,  it  will  be  seen 
that  the  debit  is  always  accompanied  by  a  credit;  hence,  the  fundamental  principle  of  douUe- 
entry  hookkeeping . 

In  every  transaction  the  debits  and  credits  are  equal. 

Every  Journal  entry  will  be  in  one  of  the  following  forms: 

1. — One  debit  and  one  credit;  as, 
Cash, 

John  Smith, 

2. — One  debit  and  two  or  more  credits;  as, 
Cash, 
*  Bills  Receivable, 

Interest, 
3. — Two  or  more  debits  and  one  credit;  as, 
Bills  Payable, 
Interest, 

Cash, 

4. — Two  or  more  debits  and  two  or  m,ore  credits;  as, 
Mdse., 
Eeal  Estate, 

Bills  Payable, 
Peter  Cooper, 

Note.— In  reading  No.  1,  the  student  will  say,  "Cash  debtor  to  John  Smith  $560.40,"  which  is  the  book- 
keeper's way  of  saying  that  Cash  is  debited  and  John  Smith  credited.  No.  2  will  be  read,  "Cash  debtor,  $754.25, 
to  Bills  Receivable,  $750,  and  Interest,  $4.25." 


560 


40 


560 


754 

25 

- 

750 
4 

300 

1 

54 

301 

600 

400 

700 
300 

40 


25' 


54 


QUESTIONS. 

1.  Define  Bookkeeping.  2.  What  are  the  essentials  of  good  bookkeeping  ?  3.  Name  the  two  systems  of 
bookkeeping,  and  explain  one  difference  between  them.  4.  Define  the  term  Debtor.  5.  Define  Debit.  6.  Define 
the  term  Creditor.  7.  Define  Credit.  8.  What  is  an  Account  ?  9.  Define  Resource.  10.  Define  Liability.  11.  De- 
fine Loss.  12.  Define  Gain.  13.  Explain  the  purpose  of  the  Day  Book,  Journal,  and  Ledger.  14.  How  many 
classes  of  accounts  are  there  ?  15.  All  accounts  show  one  or  more  of  what  four  results  ?  16.  What  results  are 
usually  shown  by  Personal  accounts  ?  17.  What  results  may  be  shown  by  Personal  accounts  ?  Name  six  Personal 
accounts.  18.  What  results  are  usually  shown  by  Property  accounts  ?  Name  twenty-five  Property  accounts. 
19.  What  results  are  usually  shown  by  Causal  accounts  ?  20.  What  results  may  be  shown  by  Causal  accounts  ? 
Name  twelve  Causal  accounts.  21.  Show  why  Principle  No.  1  of  the  Principles  for  Debit  and  Credit  is  true/ 
22.  From  Principle  No.  1  develop  the  other  three  principles  for  the  debiting  and  crediting  of  persons.  23.  Start- 
ing with  Principle  No.  1,  prove  No.  4,  and  from  No.  4  prove  No.  3,  and  from  No.  3  prove  No.  2.  24.  Prove  Prin- 
ciple No.  5,  by  showing  its  relation  to  No.  2.  25.  Prove  Principle  No.  6,  by  showing  its  relation  to  Principle  3. 
26.  Prove  Principle  7,  by  showing  its  relation  to  No.  6.  27.  Prove  Principle  8,  by  showing  its  relation  to  Principle 
5.  28.  Journal  entries  may  take  how  many  forms  ?  29.  What  is  the  Fundamental  Principle  of  Double-Entry 
bookkeeping  ?  30,  Under  what  two  conditions  would  you  debit  John  Brown  ?  31.  Under  what  two  conditions 
would  John,  Brown  debit  you  ?  32.  How  may  property  be  acquired  ?  33.  Give  a  number  of  ways  of  disposing  of 
property.  34.  Exchanged  4  yds.  calico  for  4  bu.  potatoes.  What  are  the  debit  and  credit  amounts?  35.  Why  is 
it  necessary  to  reduce  all  facts  of  business  to  a  money  measure  before  recording  ?  36.  To  what  two  classes  of  ac- 
counts with  respect  to  results  may  clothing  account  belong  ?  Explain  the  difference.  37.  Tobacco  account,  for 
an  ordinary  user,  will  show  how  much  loes  in  a  year  ?    Ten  years  ? 


SET  A'. 


MODEL    SET. 


BOOKS  USED : 

Day  Book,  Journal,  Ledger,  and  Statement  Blanks. 


Purpose. —  (1)  To  illustrate  use  of  various  books.  (2)  The  application  of  the  Principles 
for  Debits  and  Credits.  (3)  To  call  attention  to  the  possibility  of  habits  of  thrift  and  econ- 
omy, which  may  lead  to  a  competence  and  to  financial  independence. 


Seest  thou  a  man  diligent  in  his  business  ?    He  shall  stand  before  kings ;  i^ 

he  shall  not  stand  before  mean  men. — Proverbs. 


14  Stevenson's  introductory  bookkeeping. 


MEMORANDA. 


Jan.  1,  189.. — .   Student  began  to  keep  books.     His  father  loaned  him  $50  in  cash.     He  bought  for 

cash  a  Day  Book,  Journal,  and  Ledger,  paying  $1,60. 

Jan.  2.   Bought  for  cash,  apples,  10  cts. ;  candy,  5  cts. ;  gum,  5  cts. 
(Keep  a  Luxury  account.) 

Jan.  3.   Loaned  John  Smith  $5. 

Jan.  4.   Bought  books  for  school  use,  $4. 
{ Keep  a  Book  account.) 

Jan.  5.   Bought  for  cash  a  gross  box  of  lead-pencils  for  $2,  of  the  manufacturers. 
( Keep  a  Pencil  account.) 

Jan.  6.   Sold  12  lead-pencils  for  5  cts.  each. 

Jan.  8.   Received  of  John  Smith  $3  on  account. 

Jan.  9.   Sold  40  lead-pencils  at  4  cts.  each. 

Jan.  10.   Found  on  street  25  cts.  in  silver. 

Jan.  11.   Received  of  John  Smith  $1  on  account. 

Jan.  12,   Sold  for  cash,  40  lead-pencils  at  4  cts.,  and  20  lead-pencils  at  7  cts.^ 

Jan.  13.   Received  $4  cash  from  Mr.  Long  for  work  at  various  times. 
(Keep  a  Work  account.) 

Jan,  14.   Gave  to  Sunday-School,  25  cts. 

Jan,  15,   Bought  for  cash  a  ticket  to  a  concert,  $1. 

(Debit  Luxury.) 

Jan.  16.  Dropped  a  50-cent  piece  in  a  crowd,  and  was  unable  to  find  it. 

Jan.  17.  Caught  Mr.  Kindman's  runaway  horse,  and  received  from  him  for  the  service  $5  in  gold. 

Jan.  18.  Sold  Willie  Wise,  on  his  note  at  10  days,  26  lead-pencils  at  3^  cents. 

Jan,  19,  Paid  Father  $40  on  account. 

Jan.  20.  Received  $12  cash  of  Mr,  Long  for  work  in  his  store  after  school  hours 

Jan,  21.  Gave  to  Sunday- School,  20  cts. 

Jan,  22.  Bought  on  account  10  volumes  Shakespeare  of  Ginn  &  Co.,  at  $1  per  volume. 

Jan.  23.  Sold  John  Smith  for  cash  one  volume  Shakespeare  at  $2. 

Jan,  24,  Sold  for  cash  8  volumes  Shakespeare  at  $2. 

Jan.  25.  Paid  Ginn  &  Co.,  in  full  of  account,  $10  in  cash. 

Jan.  26,  Paid  Father  on  account,  $8,  cash. 

Jan.  27.  Paid  doctor  bill  by  cash,  $4, 

Jan.  28.  Gave  to  Sunday-School,  5  cts. 

Jan.  31.  Received  cash  of  Willie  Wise  for  his  note  due  to-day,  $0.91. 

Inventories. — The  Books  on  hand  are  worth  $3.    The  Pencils  on  hand  areiworth  30  cts. 


Stevenson's  introductory  bookkeeping.  15 


INVENTORIES. 


An  inventory  is  usually  defined  as  "an  estimate  of  the  value  of  any  kind  of  property";  hence 
inventories  are  usually  resources.  The  term  is  sometimes  made  to  include  liabilities  by  consider- 
ing the  word  inventory  to  be  synonymous  with  estimate.  Under  such  a  definition,  Rent  account 
would  show  a  liahility  inventory  for  the  rent  which  is  due  and  unpaid.  This,  however,  is  some- 
thing like  "crossing  the  bridge  before  reaching  it,"  or  "counting  one's  chickens  before  they  are 
hatched."  It  is  not  customary  in  business,  except  at  the  formation  of  a  partnership,  when  interest 
is  due  and  unpaid  on  notes  on  hand  or  outstanding,  or  in  the  settlement  of  an  estate,  where  the  de- 
ceased has  left  unpaid  interest,  rent  or  other  items  belonging  to  Causal  accounts.  Inventories  are 
usually  estimated  at  cost  price,  but  circumstances  sometimes  make  it  necessary  to  estimate  them  at 
present  buying  price,  present  selling  price,  or  any  estimate  that  may  be  placed  upon  them. 


STEPS  TO  BE  TAKEN  IN  WRITING  SET  k\ 


These  steps  must  be  taken  in  order.  As  this  set  is  worked  out  as  a  model,  the  student  may 
copy  it,  observing  the  order  of  the  steps  taken.  Number  the  pages  in  all  books,  and  notice  that 
your  check  pages  are  not  the  same  as  those  in  the  text-book. 

1.  Weite  the  Day  Book,  noticing  form  and  arrangement. 

2.  Journalize,  checking  the  transaction  in  Day  Book  immediately  after  placing  its  debits 
and  credits  in  the  Journal.  The  check-mark  may  be  either  V  or  the  page  on  which  the  transaction 
was  journalized. 

3.  Rule  and  Foot  Journal.  Foot  columns  first  in  lead-pencil,  and  if  they  balance,  put 
down  in  ink.  When  the  page  is  full,  carry  footings  of  both  columns  to  the  top  of  the  next  page. 
When  through  with  the  journalizing,  close  by  a  double  line. 

4.  Post.  Open  the  accounts  in  the  Ledger  in  the  order  of  their  appearance  in  the  Journal, 
giving  Cash  18  lines,  Father  5  lines.  Expense  5  lines.  Luxury  5  lines,  John  Smith  5  lines,  Books  5 
lines.  Pencils  7  lines,  Loss  &  Gain  8  lines.  Work  5  lines,  Sunday-School  6  lines,  Bills  Receivable 
5  lines,  Ginn  &  Co.  5  lines.  It  is  well  to  enter  the  names  of  accounts  and  pages  in  the  Ledger 
Index  at  the  time  of  opening  accounts  in  Ledger.  The  Ledger  Index  is  on  blank  pages  preceding 
the  Ledger  proper. 

(Note. — Directions  as  to  number  of  lines  required  for  future  sets  will  be  found  on  cover  of  Ledger.) 

After  carrying  a  debit  or  credit  from  the  Journal  to  the  Ledger  check  the  item  in  the  Journal, 
using  the  page  of  the  Ledger  to  which  it  was  carried,  and  at  the  left  of  the  item  in  the  Ledger 
place  the  number  of  the  page  in  the  Journal  from  which  the  item  came.     As  the  Journal  and  Led- 


16  STEVENSON 'S    INTRODUCTORY    BOOKKEEPING. 

ger  are  both  open  when  posting,  and  the  Journal  on  the  writer's  left,  it  is  easiest  to  place  the  page- 
check  on  a  slant,  as  illustrated  in  the  model  Journal,  page  17.  (This  illustration  cannot  be  given 
in  the  type  edition  of  this  book.) 

5.  Take  Lead-Pencil  Footings  of  Accounts  in  Ledger.  These  footings  should  be  very 
small  and  light,  and  immediately  following  the  last  item  on  both  sides  of  the  account. 

6.  Take  a  Trial  Balance  op  Footings  and  Differences.  Accounts  that  balance  may  be 
omitted  from  the  Trial  Balance. 

7.  Enter  Inventories  and  Close  Accounts  Showing  Losses  or  Gains.  Under  this  head 
close  into  Loss  &  Gain  account  the  following-named  accounts,  ^which  show  losses  or  gains :  Ex- 
pense, Luxury,  Books,  Pencils,  Work,  Sunday-School.  The  inventory,  which  is  the  estimated 
value  of  property  on  hand,  is  entered  in  backhand  writing  or  red  ink,  on  the  credit  side  of  the  ac- 
count to  which  it  belongs.  Then  the  difference  between  the  sides  is  a  loss  or  a  gain,  which  is  en- 
tered in  backhand  writing  or  red  ink  on  the  smaller  side,  which  balances  the  account.  Backhand 
or  red-ink  entries  in  a  Ledger  are  always  immediately  transferred  to  the  opposite  side  of  the  Led- 
ger, somewhere,  in  black  ink.  The  Inventory  is  brought  below  the  double  ruling  on  the  debit  side, 
as  it  is  the  amount  on  hand  at  the  beginning  of  the  new  month  or  period.  The  loss  or  gain  is  car- 
ried to  the  opposite  side  of  Loss  &  Gain  account.  In  Property  accounts  having  no  inventories, 
the  difference  is  either  a  loss  or  a  gain. 

8.  Close  Loss  &  Gain  Account.  Find  the  difference  between  the  sides,  and  enter  on 
smaller  side  in  red  ink  or  backhand  as  net  gain  or  net  loss.  Then  rule  and  foot  the  account.  If 
there  are  two  or  more  proprietors,  the  net  gain  of  each  should  be  entered.  The  net  gain  or  net 
loss  is  carried  to  the  opposite  side  of  the  proprietor's  account,  or  the  proprietors'  accounts.  The 
left  side  of  Loss  &  Gain  account  shows  the  losses  and  the  right  side  the  gains. 

9.  Make  a  Statement  of  Losses  and  Gains.    This  may  be  done  on  loose  paper,  or  placed  in 
the  Balance  Sheet.     It  is  simply  a  copy  of  Loss  &  Gain  account. 

10.  Close  the  Proprietor's  Account,  or  the  Proprietors'  Accounts,  The  difference  be- 
tween the  two  sides,  after  entering  the  net  loss  or  net  gain,  is  the  Present  Worth.  Enter  in  back- 
hand writing  or  red  ink  on  the  smaller  side  of  the  acoouiit.  Rule  and  foot,  and  transfer  below  the 
double  ruling  on  the  opposite  side  of  the  account. 

11.  Close  Accounts  Remaining  Open.  (Optional.)  The  accounts  remaining  open  are  those 
showing  resource  or  liability  only.  To  close  them,  write  the  difference  on  the  smaller  side  in  back- 
hand or  red  ink,  with  the  explanation  "  Resource "  or  '*  Liability."  Rule  and  foot  the  account, 
transferring  the  difference  below  the  double  ruling  on  the  opposite  side  in  black  ink.  As  the  ef- 
fect of  finding  a  balance  on  accounts  showing  resource  and  liability  only  is  simply  to  take  away 
equal  amounts  from  both  sides  of  the  account,  reducing  its  size,  but  not  in  any  sense  changing  the 
result  shown,  many  bookkeepers  balance  these  accounts  only  when  the  footings  become  very  large, 
in  transferring  from  page  to  page,  or  when  sides  are  equal.  In  the  Model  Set,  the  accounts  are 
closed  as  an  illustration  of  the  way  it  may  be  done. 

12.  Make  a  Statement  of  Resources  and  Liabilities.  This  may  be  on  loose  paper  or 
placed  in  the  Balance  Sheet. 

13.  Take  Last  Trial  Balance.  This  is  a  Trial  Balance  of  the  new  faces  of  all  the  accounts 
in  the  Ledger.  If  all  of  the  accounts  have  been  closed,  i.  e.,  balanced,  then  the  Last  Trial  Balance 
will  be  the  same  as  the  Statement  of  Resources  and  Liabilities,  and  it  is  only  necessary  for  the  book- 
keeper to  compare  the  amounts  brought  below  the  double  rulings  with  the  amounts  appearing  in 
the  Statement,  and  if  they  are  the  same  a  Last  Trial  Balance  is  unnecessary. 


STEVENSON  S   INTRODUCTORY   BOOKKEEPING. 


17 


DAY  BOOK. 

.(Place), State.      Jan.  1,  189. 


Student  began  to  keep  books. 

Borrowed  cash  of  Father  on  acct. 

i/19 

50 

Paid  cash  for 

Day  Book,  Journal,  Ledger, 

19 

1 

50 

2 

Paid  cash, 

Apples  10,  Candy  5,  Gum  5, 

19 

20 

3 

Loaned  John  Smith  on  acct. 

19 

5 

4 

Bought  for  cash, 

Books  for  school, 

19 

4 

5 

Bought  for  cash, 

1  gross  lead-pencils. 

19 

2 

6 

Sold  for  cash, 

12  lead-pencils 

@5 

19 

60 

8 

Received  cash  of  John  Smith  on  account, 

19 

3 

9 

Sold  for  cash. 

40  pencils 

@4 

19 

1 

60 

10 

Found  on  the  street. 

19 

25 

11 

Received  cash  of  John  Smith  on  account. 

19 

1 

12 

Sold  for  cash, 

40  lead-pencils 

@4 

1 

60 

20      "       " 

@7 

19 

1 

40 

3 

13 

Received  cash  of  Mr.  Long  for  work, 

19 

- 

4 

14 

Gave  cash  to  Sunday-School, 

19 

25 

15 

Bought  for  cash, 

1  ticket  to  concert, 

19 

1 

16 

Lost  cash  on  street, 

19 

50 

17 

Received  cash  for  services  to  Mr.  Kindman, 

20 

5 

18 

Sold  Willie  Wise  for  his  note  at  10  ds., 
26  pencils 

©SVz 

20 

91 

19 

Paid  Father  cash  on  acct., 

20 

40 

—2 

18 


Stevenson's  introductory  bookkeeping. 
Jan,  20,  189 


20  Received  cash  of  Mr.  Long  for  work, 

21  Gave  cash  to  Sunday-School, 

22  Bot.  of  Ginn  &  Co,  on  acct., 
10  volumes  Shakespeare 

23  Sold  John  Smith  for  cash, 
1  volume  Shakespeare 

24  Sold  for  cash, 
8  volumes  Shakespeare 

25  Paid  Ginn  &  Co,  cash  in  full  of  acct. 

26  Paid  Father  cash  on  acct., 

27  Paid  cash  for  doctor  bill, 

28  Gave  cash  to  Sunday-School, 
31         Reed,  cash  of  Willie  Wise  for  his  note, 


@$2 


20 
20 

20 

20 

20 
20 
20 
20 
20 
20 


12 


10 


20 


16 
10 


05 
91 


Stevenson's  intkoductory  bookkeeping. 


19 


JOURNAL. 

.(Place), 


.State.      Jan.  1,  189. 


Cash, 

Father, 

21 
21 

50 

50 

1 

Expense, 

Cash, 

21 

21 

1 

50 

1 

50 

2 

Luxury, 

Cash, 

22 
21 

20 

20 

3 

John  Smith, 

Cash, 

22 
21 

5 

5 

4 

Books, 

Cash, 

22 
21 

4 

4 

5 

Pencils, 

Cash, 

22 
21 

2 

2 

6 

Cash, 

Pencils, 

21 
22 

60 

60 

8 

Cash, 

John  Smith, 

21 

22 

3 

3 

9 

Cash, 

Pencils, 

21 

22 

1 

60 

1 

60 

10 

Cash, 

Loss  and  Gain, 

21 
23 

25 

25 

11 

Cash, 

John  Smith, 

21 

22 

1 

1 

12 

Cash, 

Pencils, 

21 
22 

3 

3 

13 

Cash, 

Work, 

21 
23 

4 

4 

14 

Sunday-School, 

Cash, 

23 

21 

25 

25 

15 

Luxury, 

Cash, 

22 
21 

1 

1 

16 

Loss  and  Gain, 

Cash, 

23 

21 

50 

50 

77 

00 

7  7 

90 

77 

90 

77 

90 

( 

20 


Stevenson's  introductory  bookkeeping. 
Jan.  17,  189 


17 

Cash, 

Loss  and  Gain, 

18 

Bills  Receivable, 

Pencils, 

19 

Father, 

Cash, 

20 

Cash, 

Work, 

21 

Sunday-School, 

Cash, 

22 

Books, 

Ginn  &  Co., 

23 

Cash, 

Books, 

24 

Cash, 

Books, 

25 

Ginn  &  Co., 

Cash, 

26 

Father, 

Cash, 

27 

Expense, 

Cash, 

28 

Sunday- School, 

Cash, 

31 

Cash, 

Bills  Receivable, 

Inventories : 

Books, 
Pencils, 


21 
23 
23 
22 
21 
21 
21 
23 
23 
21 
22 
23 
21 
22 
21 
22 
23 
21 
21 
21 
21 
21 
23 
21 
21 
23 


22 

22 


77 
5 


40 
12 

10 

2 

16 

10 


90 


91 


20 


77 
5 

40 
12 

10 

2 

16 

10 


90 


91 


20 


05 
91 


186 

186 


97 


186 

186 


05 


91 


97 


30 


Stevenson's  intkoductoey  bookkeepino. 


21 


LEDGEE. 

CASH. 


189.... 

189.... 

Jan. 

1 

19 

50 

Jan. 

1 

« 

19 

1 

50 

6 

19 

60 

2 

19 

20 

8 

19 

3 

3 

19 

5 

9 

19 

1 

60 

4 

19 

4 

10 

19 

25 

5 

19 

2 

11 

19 

1 

14 

' 

19 

25 

12 

19 

3 

15 

19 

1 

13 

19 

4 

16 

19 

50 

17 

20 

5 

19 

20 

40 

20 

20 

12 

21 

20 

20 

23 
24 

20 
20 

2 
16 

25 

26 

99.S6 
76.70 

20 
20 

10 
8 

22.66 

31 

Eesource, 

20 

98 

91 

36 

27 
28 
31 

Resource, 

20 
20 

4 

76 

^2 

05 

70 

66 

99 

36 

99 

36 

Jan. 

31 

22 

66 

FATHER. 


Jan. 

19 

u 

26 

u 

31 

Liability, 


20 
20 

40 
8 

2 

Jan, 

1 

50 

Jan. 

31 

Liability, 


19 

50 

50 

2 

EXPENSE. 


Jan. 


1 

27 


19 

1 

50 

Jan. 

31 

20 

4 

5 

50 

Lose 


5 

50 

5 

50 

22 


189... 

Jan. 

2 

(( 

15 

STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 
liUXURY. 


Loss, 


189.... 

19 

20 

Jan. 

31 

19 

1 

1 

20 

1 

m 

1 

20 

JOHIf  SMITH. 


Jan. 

3 

Jan. 

31 

Resource, 


19 

5 

Jan. 

(( 

8 
11 

31 

5 

1 

Resource, 


19 

3 

19 

1 

1 

5 

Jan. 


1 
22 
31 


Gain, 


Jan.       31        Inventory, 


BOOKS. 


19 

4 

Jan. 

23 

20 

10 

(( 

24 

23 

7 

(( 

31 

21 

3 

Inventory, 


20 
20 

2 

16 

3 

21 

PENCILS. 


Jan. 

5 

31 

Jan. 

31 

Gain, 


Inventory, 


19 

23 

2 

41 

Jan. 

u 
(( 
(( 
(( 

6 

9 

12 

18 

31 

6 

41 

30 

Inventory, 


19 
19 
19 
20 

1 
3 

GO 
60 

91 
SO 

6 

41 

189.... 

Jan. 

16 

(( 

31 

(( 

31 

(( 

31 

(( 

SI 

Stevenson's  introductory  bookkeeping. 
loss  and  gain. 


2H 


Lost, 

Expense, 

Luxury, 

Sunday -School, 

StudenVa  Net  Gain, 


189.... 

J 19 

50 

Jan. 

10 

21 

5 

50 

(( 

17 

22 

1 

20 

(( 

31 

23 

^S 

U 

50 

70 

96 

31 
31 

32 

66 

Found, 

Gift, 

Books, 

Pencils, 

Work, 


J 19 

25 

J  20 

5 

22 

7 

22 

4 

41 

23 

16 

8> 

32 

66 

66 

Jan. 


31 


Gain, 


WORK. 


23 

16 

Jan. 

13 

20 

16 

19 
20 


4 
12 


16 


SUNDAY-SCHOOL. 


Jan. 

14 

(( 

21 

(( 

28 

19 

25 

Jan. 

31 

20 

20 

20 

05 

50 

Loss, 


S3 

50 

50 

Jan.       18 


BILLS  RECEIVABLE. 


20 

91 

Jan. 

31 

20 


91 


Jan.       25 


GINN  &  CO. 


20 

10 

Jan. 

22 

20       10 


Jan. 


31 


Present  Worth, 


STUDENT. 


H 

96 

Jan. 

31 

24 

96 

Jan. 

31 

Net  Gain, 


Present  Worth, 


23 


24 


24 


24 


96 


96 


96 


Note. — The  student  has  noticed  the  broad  column  between  the  date  and  check-mark  columns  of  the  Ledger. 
Long  ago  it  was  the  custom  to  fill  in  these  columns  with  the  name  of  the  corresponding  account.  For  example, 
our  first  Journal  entry  was  Cash  Dr.  and  Father  Cr.  The  old  plan  was  to  write  "To  Father  "  in  the  wide  column 
on  the  debit  side  of  cash  account,  and  "  By  Cash"  on  the  credit  side  of  Father  account.  No  modern  bookkeeper 
or  text-book  on  bookkeeping  uses  this  cross-entry  plan,  and  the  wide  column  is  now  used  for  pencil  figures,  and 
the  terms  Resource,  Liability,  Loss,  Gain,  Balance,  and  Inventory.  Some  bookkeepers  use  the  column  for  the 
date  of  maturity  in  Bills  Receivable  and  Bills  Payable  accounts  when  they  do  not  have  a  Bill  Book. 


24 


Stevenson's  introductory  bookkeeping. 


TEIAL  BALANCE  OF  FOOTINGS  AND  DIFFERENCES. 


L.P. 

21 

Dr.    Fts. 

Cr.    Ft8. 

Dr.    Dfs. 

Cr.    Df8. 

Cash, 

99 

36 

76 

70 

22 

66 

21 

Father, 

48 

50 

2 

21 

Expense, 

5 

50 

5 

50 

22 

Luxury, 

1 

20 

1 

20 

22 

John  Smith, 

5 

4 

1 

22 

Books, 

14 

18 

4 

22 

Pencils, 

2 

6 

11 

4 

11 

23 

Loss  and  Gain, 

50 

5 

25 

4 

75 

23 

Work, 

16 

16 

23 

Sunday-School, 

50 

50 

23 

Bills  Receivable, 

91 

91 

23 

Ginn  &  Co., 

10 

10 

■ 

186 

97 

186 

97 

30 

86 

30 

86 

STATEMENT  OF  RESOURCES  AND  LIABILITIES. 


21 

Resources. 

Liahilities. 

Cash, 

22 

66 

21 

Father, 

2 

22 

John  Smith, 

1 

22 

Books, 

3 

22 

Pencils, 

30 

8S 

StudenVs  Present  Worth, 

U 

96 

26 

96 

26 

1 

96 

STEVENSON  S  INTRODUCTOJRY   BOOKKEEPING, 


25 


STATEMENT  OF  LOSSES  AND  GAINS. 


22 

Books: 

Losses. 

Gains. 

Sales, 

18 

Inventory, 
Total, 

3 

21 

22 

Cost, 
Gain, 

Pencils: 

14 

7 

7 

Sales, 

6 

11 

Inventory, 
Total, 

30 

6 

41 

21 

Cost, 
Gain, 

Expense, 

2 

5 

50 

4 

41 

4 

41 

22 

Luxury, 

1 

20 

23 

Loss  and  Gain: 

Found, 

Gift, 

Total, 

5 

25 

5 

25 

23 

Lost, 
Gain, 
Work, 

50 

4 
16 

75 

4 

75 

23 

■   Sunday-School, 
Net  Oain, 

u 

50 
96 

32 

16 

32 

16 

26 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


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Cash, 

Father, 

Expense, 

Luxury, 

John  Smith, 

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Pencils, 

Loss  and  Gain, 

Work, 

Sunday-School, 

Student, 

Net  Gain, 

Student's  Present  Worth, 

t-IiHt-I$^M(M(MCOCOC0CO 

Stevenson's  introductory  bookkeeping.  27 


QUESTIONS  ON  SET  A\ 


1.  Do  the   eight  principles  for  debits  and  credits  enable  you  to  determine  the  results  shown  by  the  various 

accounts  ? 

2.  What  are  your  Journal  footings  for  January  ? 

3.  What  are  the  footings  of  your  Trial  Balance  ? 

4.  Why  are  the  footings  of  the  Trial  Balance  of  footings  the  same  as  the  Journal  footings  ? 

5.  Why  does  a  Trial  Balance  balance  ? 

6.  If  the  Trial  Balance  should  not  balance,  what  errors  would  you  look  for  ? 

7.  What  errors  might  exist  and  the  Trial  Balance  balance  ? 

8.  Why  not  combine  Luxury,  Books,  Pencils,  Sunday-School,  and  Expense  accounts  ? 

9.  Which  side  of  the  Luxury  account  will  be  the  larger  when  it  shows  a  loss  ? 

10.  What  other  names  could  you  apply  to  Work  account  ? 

11.  What  is  the  difference  between  a  spendthrift  and  a  miser  ? 

12.  How  many  misers  do  you  know  ?    How  many  spendthrifts  ?  * 

13.  Is  a  boy  or  girl  who  keeps  books  regularly  and  systematically,  submitting  them  to  parents  for  approval,  likely 

to  be  a  spendthrift  ? 

14.  What  will  a  saving  of  10  cts.  a  day  for  50  years  compounded  at  5%  become  ?    Ans.  $6,769. 

15.  What  are  the  results  shown  by  each  of  the  accounts  ? 

16.  Name  the  personal  accounts. 

17.  Name  the  property  accounts. 

18.  Name  the  causal  accounts. 

19.  What  does  a  Balance  Sheet  contain  ? 

20.  Is  it  necessary  to  make  the  separate  statements,  and  also  a  Balance  Sheet  ? 

21.  What  was  Student  worth  January  1  ? 

22.  What  was  Student  worth  January  31  ? 

23.  What  was  his  principal  source  of  income  ? 

24.  How  much  have  you  paid  for  clothing  during  the  past  year?    For  board?    For  books?    For  things  that  you 

could  have  done  without  ? 

25.  Make  an  estimate  of  the  cost  of  a  boy  to  his  parents  from  his  birth  up  to  his  2l8t  year ;  also,  of  a  girl  up  to 

her  18th  year. 

26.  How  can  these  debts  be  paid  ? 

27.  How  could  the  following-named  accounts  be  kept ?    Promises;  Resolutions;  Vices;  Friendships;  Time;  Rec- 

reation, etc.,  etc. 
58.   Name  the  subdivisions  of  these  general  heads. 

29.  Discuss  inventories. 

30.  Define  thrift. 

31.  Define  economy. 

62.  Ask  mother  how  much  the  family  has  paid  for  sugar  during  the  past  year?  For  tea?  For  coffee?  For 
flour  ?     For  soap  ? 

33.  If  the  family  has  no  record  of  expenses,  ask  your  parents  what  they  will  pay  you  to  keep  a  systematic  rec- 
ord during  the  ensuing  year.  It  may  be  valuable  as  well  as  interesting.  A  record  of  the  cents  is  a  record 
of  sense  —  or  the  lack  of  it. 


28  Stevenson's  introductory  bookkeeping. 


POSSIBLE  EEEOES  AND  HOW  TO  COERECT  THEM. 


Errors  will  occur.     To  know  how  to  correct  them  is  as  important  as  to  know  how  to  avoid  them. 
A  common  error  is  to  reverse  the  debit  and  credit  in  a  transaction  as  entered  in  the  Journal, 
as  placing 

CaBh,  100 

Mdse.,  100 

when  the  entry  intended  was 

Mdse.,  100 

Cash,  100 

If  this  error  is  discovered  before  the  posting,  it  is  best  corrected  by  writing  "  Reverse  "  across 
the  entry  and  posting  to  the  opposite  sides  of  the  accounts,  as  .  ••  ~ 

Cash,  2  100 

Mdse.,         g  100 

If  the  entry  is  found  to  be  wrong  after  the  posting  is  done,  then  the  correction  is  made  by  a 
new  Journal  entry,  as  follows : 

Mdse.,  200 

Cash,  200 

In  the  wrong  entry  should  be  written,  "  Error ;  see  Correction,  p.  — ."  In  the  correcting  en- 
try should  be  written,  "  Correction ;  see  page  — ."  Crediting  Mdse,  $100  and  then  debiting  it  $200 
is  equivalent  to  debiting  it  $100. 

The  following  entry  should  have  been  made : 

Cash,  50 

Bills  Receivable,  40 

Mdse.,  90 

but  by  mistake  was  entered  in  the  Journal  as  follows : 

John  Smith,  50 

Bills  Payable,  40 

Mdse.,  90 

If  the  error  was  discovered  before  posting,  a  little  skillful  scratching  would  set  matters  right, 
or  the  drawing  of  a  line  through  the  wrong  entry  and  the  substitution  of  the  correct  one  would 
also  suffice.  However,  if  the  posting  is  done,  it  is  advisable  to  make  a  new  Journal  entry,  as  in 
the  other  illustration.     It  would  be  : 

Cash,   .  50  • 

Bills  Receivable,  40 

John  Smith,  50 

Bills  Payable,  40 

The  explanatory  reference  should  be  made  in  original  entry  and  correcting  entry. 
Correct  by  new  entries: 

1.  Bills  Receivable,  To  Cash  $600,  was  entered  for  Bills  Payable,  To  Cash  $500. 

2.  Bills  Payable  $200,  Cash  $300,  To  Mdse.  $500,  was  entered  for  Cash  $500,  To  Bills  Payable  $200, 

Mdse.  $300. 

3.  John  Smith  $100,  Cash  $300,  To  Bills  Receivable  $400,  was  entered  for  John  Brown  $100,  Bills  Re- 

ceivable $300,  To  Cash  $400. 

4.  Cash,  To  Mdse.  $800,  was  entered  for  Cash,  To  Mdse.  $850. 

5.  Cash,  To  Mdse.  $7100,  was  entered  for  Cash,  To  Mdse.  $500. 

6.  Cash,  To  Bills  Payable  $78,  was  entered  for  Cash,  To  Bills  Payable  $87. 


Stevenson's  introductory  bookkeeping.  29 


SET  A^ 


MEMORANDA. 

To  be  written  like  Set  A^. 


Jan.  1.   Willie  Brown's  father  gave  him  a  $5  bill,  to  pay  for  his  books  and  other  expenses,  necessary 

to  begin  school  to-day. 

Note. — This  is  a  gift,  and  not  a  loan.     Credit  Willie  Brown. 

Jan.  2.   Willie  Brown  bought  books  for  school,  paying  $2.50  in  cash. 

Jan.  3.   Keceived  for  doing  an  errand,  10  cts. 

Jan.  5.   Bought  of  William  La  Bar  a  violin,  for  $6,  paying  cash  $2,  balance  on  account. 

Jan.  6.   Secured  a  position  to  assist  in  a  store  Saturdays  and  after  school,  at  $1.25  per  week. 

Jan.  8.  Bought  ticket  to  an  entertainment,  10  cts.  Received  from  Mr.  Emerson  25  cts.  for  deliver- 
ing a  message. 

Jan.  10.   Bought  for  cash,  nuts,  15  cts. ;  candy,  10  cts. 

Jan.  11.   Received  for  work  before  school,  30  cts. 

Jan.  12.   Paid  picnic  expenses,  20  cts. 

Jan,  13.   Received  cash  for  first  week's  wages,  $1.25. 

Jan.  15.   Bought  25  fine  marbles  at  4  cts.,  $1,  paying  cash. 

Jan.  16.   Sold  10  marbles  at  6  cts.,  60  cts. ;  received  cash. 

Jan.  18.  Bought  20  copies  of  Emporia  Daily  Repuhlican  at  2  cts.  each,  and  sold  them  at  private 
houses  at  5  cts. 

Jan.  20.   Received  cash  for  one  week's  wages,  $1.25;  received  for  3  hours  "  overtime  "  work,  25  cts. 

Jan.  22.    Bought  for  cash  a  birthday  present  for  Mother,  $1. 
Note. —  Debit  "  Present "  account. 

Jan.  23.  'Bought  5  white  rabbits  of  E.  E.  Salser  at  50  cts.,  paying  cash  $1;  balance  on  account. 

Jan.  27.   2  rabbits  died.    (No  entry  required.)    Sold  for  cash  the  other  3  at  45  cts.  each.    Received 

cash  for  one  week's  wages,  $1.25. 
Jan  29.   Sold  5  marbles  at  8  cts.  each,  40  cts. 

Feb.  4.   Received  cash  for  regular  wages,  $1.25;  for  overtime,  9  hours,  75  cts. 
Feb.  6.   Picked  up  on  street  a  purse  containing  valuable  papers,  belonging  to  Mr.  Rich.     Received 

50  cts.  for  returning  same.     Paid  E.  E.  Salser  cash  in  settlement  of  acct.,  $1.50. 
Feb.  7.   Picked  apples  for  Mr.  Farmer,  before  school,  and  received  25  cts.  for  the  work. 
Feb.  8.   Received  10  cts.  for  selling  papers  for  Johnny  Jones. 
Feb.  11.   Received  cash  for  one  week's  wages,  $1.25.     Paid  Wm.  La  Bar  cash  in  settlement  of 

acct.,  $4. 

Inventory. — Marbles  on  hand,  40  cts. 
Violin,  $6.00. 
Books  on  hand,  estimated  worth,  $2.25. 


30  Stevenson's  intkoductory  bookkeeping. 


SET  A\ 


MEMORANDA. 

To  be  written  like  Set  A^. 


Jan.  1.   Your  father  gave  you  $100,  and  sent  you  to  Kansas  Normal  College.   Bought  Journal,  25  cts. ; 

a  ticket  to  Ft.  Scott,  $5.35 ;  lunch,  30  cts.;  book  of  newsboy,  "  Heavenly  Twins,"  $1.    Paid  for 

hack  and  dray,  50  cts. 

Note. — Debit  Expense,  Transportation,  Board  and  Books. 
Jan.  2.   Paid  board  in  Short  club  one  assessment  in  advance,  $5 ;  room  rent,  $8. 
Jan.  4.   Keceived  from  office,  mileage  ( R.  R.  fare  refunded )  in  cash,  $2.25.     Paid  incidental  fee, 

$5.     Bought  books,  $4.     Loaned  A.  Student,  $5. 
Jan.  5.   Received  from  A.  Roommate  one-half  month's  room  rent,  $4. 

Jan.  6.   Found  a  purse  containing  $600,  in  bills.     Paid  Daily  Telegraph  50  cts.  for  advertisement; 
Jan.  7.   Joined  baseball  section  of  athletic  association  and  paid  fee  in  cash,  $1.50.     Mr.  Chas.  Cross 

proved  himself  owner  of  the  purse.     He  paid  $10  for  services  rendered. 
(Credit  yourself.) 
Jan.  8.   Gave  to  church  and  Sunday-School,  25  cts. 

(Debit  Benevolence  account.) 
Jan.  9.   Went  to  a  show  and  took  A.  Roommate,  paying  for  tickets,  20  cts.     Borrowed  $5  of  A. 

Roommate. 
Jan.  10.   Lost  50  cts.     Loaned  P.  Katchakoff,  on  his  note  at  10  days,  $12. 
Jan.  12.   Bought  a  $15  suit  of  clothes  for  $10  in  cash.     Received  from  father  a  present  of  a  bank 

draft  for  $60,  for  which  received  cash  at  bank. 
Jan.  13.   Had  shoes  half-soled,  75  cts.     Gave  to  a  poor  man,  20  cts. 
Jan.  14.   Sold  to  a  student  a  book,  $1,  receiving  cash.     Paid  club  assessment,  $5. 
Jan.  16.   Received  $3  from  A.  Student  on  account. 
Jan.  17.   Sold  P.  Katchakoff's  note  for  $11  cash;  discount,  $1. 
Jan.  19.   Bought  Ledger,  50  cts.     Posted  and  made  Balance  Sheet. 

Inventory. —  Books  on  hand  estimated  to  be  worth  $3.60. 


SET  B\ 

FARMING  SET, 


FEBRUARY. 


Objects. —  ( 1 )  The  opening  and  closing  of  a  set  of  books.  (  2  )  Drill  in  Journalizing. 
(3)  Forms  and  Journalizing  of  Bills  Payable,  Bills  Receivable,  and  Bank  Checks.  (4)  Comput- 
ing of  interest  and  discount.  (5)  To  find  date  of  maturity  on  notes  and  bills.  (6)  Days  of 
Grace. 


Instructions. — The  work  should  be  neater  and  more  accurate  than  in  the  January  sets.  Se- 
cure blank  note  and  check  forms,  and  fill  out  the  notes  and  checks  in  proper  form.  Interest  and 
Discount  are  computed  at  6%,  unless  otherwise  stated. 


"For  as  our  habits  are,  such  will  be  our  pleasures  and  pursuits." 


32  Stevenson's  introductory  bookkeeping. 


TO  FIND  THE  DATE  OF  MATURITY  OF  NOTES  AND  BILLS. 


There  is  perhaps  nothing  in  the  whole  field  of  computation  that  troubles  the  average  student 
more  than  ascertaining  the  exact  day  when  a  note  or  bill  becomes  legally  due,  and  yet  it  is  very 
easy.  In  business  this  is  of  great  importance,  as  it  enables  the  holder  to  Jtake  proper  action  to  hold 
the  indorsers  responsible  for  its  payment.  The  law  requires  prompt  action  in  protesting  notes  and 
giving  notice  to  the  indorsers,  and  if  it  is  not  done  at  just  the  right  time  they  are  released.  Notes 
are  usually  drawn  payable  in  1,  10,  30,  60,  or  90  days,  or  so  many  years  or  months  after  date.  When 
the  note  reads  "  months,"  calendar  months  are  meant,  and  counting  forward  the  given  number  of 
months  from  the  date  will  give  the  required  month  and  year,  and  the  day  of  month  being  the  same 
as  that  given  in  the  date,  it  is  only  necessary  to  add  three  days  of  grace  and  we  have  the  legal  ma- 
turity. If  days  of  grace  are  prohibited  by  the  note  or  laws  of  the  state,  they  are,  of  course,  omitted 
in  the  computation. 

When  the  time  is  expressed  in  the  note  in  days,  they  should  be  counted  right  off  from  the  date, 
without  reference  to  the  months  or  the  number  of  days  in  any  of  them.  There  are  just  as  many 
days  from  any  date  in  any  month,  to  the  same  date  in  the  next  month,  as  there  are  days  in  the 
-first  month.  For  example,  from  February  28  to  March  28  there  are  28  days.  Leap  years  there 
would  be  29.  From  August  18  to  September  18  there  would  be  31  days,  etc.  This  fact  being 
borne  in  mind,  we  may  make  the  computations  mentally  and  with  exactness.  Count  by  thirties  as 
you  want  one,  two  or  three  of  them.  Take  a  note  dated  February  23,  1885,  having  60  days  to  run. 
From  this  date  to  March  23  there  are  only  28  days,  so  we  are  two  short  of  our  30.  From  March 
23  to  April  23  is  31  days,  or  one  over  our  30.  We  now  have  our  two  thirties  minus  one  day, 
which  add  to  April  23,  making  it  the  24:th;  and  then  adding  the  three  days  of  grace,  we  have  April 
27th,  the  date  of  legal  maturity. 


DAYS  OF  GRACE  ON  NOTES  AND  BILLS. 


The  custom  of  allowing  days  of  grace,  that  is,  a  certain  number  of  days  more  than  the  number 
mentioned  in  a  note  for  the  payment  of  it,  seems  rather  strange  and  nonsensical,  but  it  has  never- 
theless grown  into  a  law  that  is  as  well  known  and  as  fully  recognized  as  if  it  were  put  down  in  so 
many  words  in  the  law.  It  is  purely  common  law,  however,  having  grown  up  among  merchants  as 
a  matter  of  favor,  but  as  interest  is  charged  for  the  days  of  grace  the  idea  of  favor  assumes  small 
proportions.  The  number  of  days  allowed  varies  in  different  countries  from  3  to  15,  but  in  America 
the  rule  is  almost  without  exception  to  allow  three  days  on  all  notes,  drafts,  bills  of  exchange,  etc., 
provided  they  are  negotiable  and  are  not  payable  on  demand  or  at  sight.  California  and  a  few 
other  states  have  abolished  days  of  grace,  and  many  other  states  are  considering  the  advisability  of 
so  doing. 

When  the  maker  or  acceptor  is  entitled  to  grace,  the  number  of  days  may  be  lessened  by  Sun- 
day or  legal  holidays,  where  they  come  on  the  last  day  of  the  term,  but  not  where  they  intervene. 
For  instance,  if  the  last  day  of  grace  falls  on  Sunday,  the  note  would  be  due  on  Saturday;  but  if 
Saturday  were  a  legal  holiday,  the  note  would  be  due  on  Friday.  If  the  first  or  second  days  of 
grace,  or  both  of  them,  are  Sundays  or  legal  holidays,  the  date  of  maturity  is  not  affected.  Where 
the  note  excludes  days  of  grace  and  it  falls  due  on  Sunday,  or  a  legal  holiday,  it  is  not  legally  due 
till  the  next  day  after  it.  Actions  at  law  must  not  be  brought  until  the  day  after  the  legal  maturity 
of  the  note,  as  the  maker  has  the  wholfe  of  that  day  in  which  to  pay  it.  If  the  action  is  brought  on 
the  day  it  is  legally  due,  the  plaintiff  will  be  non-suited  and  have  to  pay  the  costs. 


Stevenson's  introductory  BOOKKEEPiNa.  33 


STEPS  TO  BE  TAKEN  IN  WRITINa  SET  B^ 


•Do  not  deviate  from  the  following  order  : 

1.  Write  the  Day  Book.     The  record  should  be  complete,  yet  devoid  of  unnecessary  words. 
Refer  to  Model  Set  for  arrangement. 

2.  Journalize.     Determine  the  debits  and  credits  in  each  transaction  by  means  of  the  eight 
principles. 

3.  Rule  and  Foot  Journal.     A  single  line  across  the  amount  columns  indicates  an  addi- 
tion, and  a  double  line  indicates  an  equilibrium  and  a  closing. 

4.  Post.    The  explanation  columns  of  the  Ledger  should  not  be  filled  out  as  shown  in  some 
old  text-books.     Nothing  is  gained  and  time  is  lost  by  so  doing. 

5.  Take  Lead-Pencil  Footings  of  Accounts.    Be  sure  to  make  them  very  small  and  very 
light. 

6.  Take  a  Trial  Balance  of  Footings  and  Differences,  in  first  columns  of  Balance  Sheet. 

7.  Enter  Inventories  and  Close  Accounts  showing  Losses  or  Gains. 

8.  Close  Loss  and  Gain  Account. 

9.  Make  a  Statement  of  Losses  and  Gains,  in  loss  and  gain  columns  of  Balance  Sheet. 

10.  Close  Proprietor's  Account. 

11.  Make  a  Statement  of  Resources  and  Liabilities,  in  the  resource  and  liability  columns 
of  Balance  Sheet. 

12.  Take  Last  Trial  Balance.  It  will  not  be  the  same  as  the  resource  and  liability  columns 
this  month,  as  we  have  not  balanced  the  accounts  which  show  resource  and  liability  only.  How- 
ever, D.  A.  Ellsworth  &  Co.  and  Bills  Receivable  accounts  balance  and  may  be  "ruled  up,"  if  the 
bookkeeper  so  desires.  Cash  account  is  not  balanced,  and  the  same  faces  appear  for  it  in  the  last 
Trial  Balance  as  in  the  first  Trial  Balance  of  footings. 


34  Stevenson's  introductory  bookkeeping. 


MEMOEANDA.— SET  B^— February. 


Feb.  1.  A.  S.  Newman,  a  farmer,  desiring  to  know  more  about  his  business  in  the  future  than  in  the 
past,  employs  the  school-teacher  at  $10  per  month  to  open  and  keep  a  set  of  books  for  him. 
An  inventory  is  taken  of  the  properties  owned  by  Mr.  Newman,  with  the  following  result:  The 
farm  is  valued  at  $2,000;  horses,  $100;  cattle,  $200;  machinery,  $150;  wheat  in  bin,  $400;  corn 
in  crib,  $200;  hogs,  $50;  poultry,  $20;  cash  on  hand,  $300.  Mr.  Newman  owes  W.  C.  Stevenson 
on  account  $400,  and  D.  A.  Ellsworth  &  Co.  on  account  $500. 

Note. — In  making  the  opening  Journal  entry,  debit  the  resources,  credit  the  liabilities,  and  credit  the 
proprietor  with  the  difference  between  them.  Accounts  should  be  kept  with  each  of  the  resources 
and  liabilities  named. 

Feb.  1.   Bought  stamps  and  stationery  for  cash,  $3. 
(Debit  Expense.) 

Feb.  2.   Sold  hogs  for  the  following  promissory  note: 


$  68.00  Reading,    Kan.,    Feb.    2        -^gy 

'^..^^.....^.^1.^.. after  date i^. promise  to  pay 

^- S-...l®^^^^ or  order, 

^i^I.::^i^....:^^..J^ll^^. Dollars, 

value  received,  with  interest  at .?  k:. 

j^(j      1  JOHN  DOE. 


Note. — Bills  Receivable  is  a  form  of  property. 

Feb.  3.   Paid  sundry  expenses  in  cash,  $10. 

Feb.  4.   Sold  poultry  for  cash,  $18. 

Feb.  6.   Paid  for  repairs  on  machinery,  cash,  $2. 
(Debit  Machinery  account.) 

Feb.  7.   Sold  com  to  0.  R.  Oliver  for  $300,  taking  in  payment  $175  in  cash  and  the  following  note: 


$   125. 

00 

Thirty 

days 

Emporia 

Kan. 
date... 

.J. Feb. 7 ^  2gg 

.  .^® promise  to  pay 

or  order. 

A.  S 

..after 

.  Newman 

L 

One 

hundred. 

twenty- 

five 

and 

no/lOO 

Dollars, 

at  the... 
Value  i 
JVo. 2 

First  National 

Bank 

C.  R. 

OLIVER.      ' 

received. 
Due.. 

3/12. 



JOHN 

SMITH. 

Stevenson's  introductory  bookkeeping.  35 


Feb.  8.   One  horse  and  one  cow  struck  by  lightning  and  killed. 
(No  Journal  entry  required.) 

Sold  hide  of  cow  for  the  following  check: 


l....?..r.°.?  Emporia,  Kan., E??.- ? ,    189 

FIRST  NATIONAL   BANK, 

Emporia,  Kansas. 

Pay  to  the  order  of. ^  • ^.:. ^®^^^^ 

^il...^I^.^....R9./.}:?.?.. : Dollars, 

J.    C.    SMITH  &   CO. 

jy^^      36  By    I.O.S. 


I  Note. —  Checks  are  considered  as  equivalent  to  the  cash.     Credit  Cattle. 

^      Feb.  9.   Bot.  a  Jersey  cow,  giving  in  payment  the  following  note: 


#....^5.-..?.9  Emporia,  Kan., Fe^..- 9 ,  189 : 

:....^^°  ...^°^^.^s after  date I promise  to  pay 

King  &  Brown  -, 
^ or  order, 

.F£?l?-£iis.....andj:io/l00 ^^^^^^^^ 

with  interest  at r./o. 

Value  received.  A.    S.    NEWMAN. 

JVo. '^ Due 4/9  - 1 2  _. 


( By  giving  your  note  you  owe  a  Bills  Payable  instead  of  the  party  to  whom  the  note  is  given.) 

Feb.  10.   Paid  D.  A.  Ellsworth  &  Co.  in  full  of  account  by  $50  cash  and  note  at  30  da^s  for  balance. 

Feb.  11.    Sold  160  acres  from  farm  for  $1,800  cash. 

Feb.  13.   Discounted  note  received  on  the  7th  at  the  bank,  receiving  cash  for  the  proceeds.     Kate 

of  discount,  6  %.     Time,  27  days. 
Feb.  14.    Sold  wheat  for  $600  cash.  \  ' 

Feb.  15.    Keceived  cash  of  John  Doe  for  his  note  and  interest  on  same,  due  to-day. 
Feb.  16.    Sold  cattle  for  $700,  taking  in  payment  a  note  at  30  days,  with  interest  at  10  %. 
Feb.  17.    Paid  for  sundry  expenses,  $25  in  cash. 
Feb.  fiO.   Discounted  note  received  on  the  16th  at  6  %,  receiving  cash  for  the  proceeds. 

( Find  the  amount  of  $700  for  aS  days  at  10  % ,  and  discount  this  amount  for  29  days  at  6  % .    Discount  is 
debited  and  interest  credited.     Why  ? ) 

Feb.  21.   W.  C.  Stevenson  accepted  $350  cash  in  full  of  account,  and  gives  a  receipt  for  $400. 

(Debit  W.  C.  Stevenson  for  $350,  and  close  his  account  into  Loss  and  Gain,  at  the  time  of  closing  other 
accounts  producing  losses  or  gains.) 

Feb.  22.   Mr.  Newman  requests  the  bookkeeper  to  find  his  worth  and  close  accounts,  as  he  contem- 
plates taking  a  partner. 

Inventories  are  taken,  with  the  following  results:  Farm,  $1,900;  horses,  $50;  cattle,  $45;  machinery, 
$150;  poultry,  $16. 


36  Stevenson's  intboductory  bookkeeping. 


QUESTIONS  ON  SET  B^ 


1.  How  is  the  opening  Journal  entry  made  when  there  are  many  resources  and  liabilities  ? 

2.  Why  credit  the  proprietor  with  the  difference  between  the  resources  and  liabilities  ? 

3.  What  divisions  of  Expense  account  would  be  advisable  in  a  carefully  kept  set  of  books  for  a  farmer  ? 

4.  Which  side  of  a  Property  account  is  the  larger  when  there  is  no  inventory  and  the  account  shows  a  loss  ? 

5.  Which  side  of  a  Property  account  is  the  larger  when  there  is  no  inventory  and  the  account  shows  a  gain  ? 

6.  The  debit  side  of  Cash  being  the  larger,  what  is  the  difference  called  ? 

7.  Can  the  credit  side  of  Cash  be  larger  than  the  debit  ? 

8.  Why  must  the  debit  side  of  Bills  Receivable  account  be  the  larger,  if  there  is  any  difference? 

9.  Which  side  of  Bills  Payable  account  must  be  the  larger,  if  there  is  any  difference,  and  why  ? 

10.  Which  side  of  a  personal  account  is  the  larger  when  it  shows  a  resource  ?  a  liability  ?  a  loss  ?  a  gain  ? 

11.  Give  two  ways  of  making  the  entry  for  a  settlement  of  a  personal  account  for  less  than  the  amount  due. 

Ana.  It  is  preferable  to  make  the  account  show  the  loss  or  gain  on  its  face.    Some  enter  the  loss  or  gain  in 
the  Journal,  debiting  or  crediting  the  person  with  the  full  amount  necessary  to  balance  his  account. 

12.  In  closing  an  account,  why  is  the  equality  of  the  Ledger  not  affected  ?    Ans.  Because  equals  taken  from 

equals,  leaves  equal  differences. 

13.  Illustrate  this  with  Mdse.,  Cash,  Interest, 

14.  What  is  the  date  of  maturity  of  the  note  received  on  February  2  ? 

15.  How  does  the  note  received  on  the  7th  of  February  differ  from  the  one  received  on  the  2d  ? 

16.  Why  are  checks  considered  equivalent  to  cash  ? 

17.  When  do  you  debit  Bills  Receivable  ? 

18.  When  do  you  credit  Bills  Receivable  ? 

19.  To  what  class  of  accounts  does  Bills  Receivable  account  belong  f 

20.  What  results  are  shown  by  Bills  Receivable  account  ? 

21.  Can  Bills  Receivable  account   be  made  to  show  its  loss  or  gain  on  its  face  ?    Ans.   Yes,  the  same  as  any 

other  property  account;  however,  few  bookkeepers  do  so.    They  prefer  to  debit  or  credit  bills  with  their  faceSj 
carrying  to  Discount  account  any  allowances  made. 

22.  To  which  class  of  accounts  does  Bills  Payable  account  belong  ? 

23.  Accepted  $78,  for  a  note  of  $80.     What  entry  ? 

24.  Paid  $90,  cash,  in  redemption  of  your  note  for  $100.    What  entry  ? 

25.  Consult  your  arithmetic  for  full  explanation  of  reasons  for  method  of  discounting  a  note  drawing  interest  as 

given  on  February  .20.    Explain. 

26.  Explain  method  of  finding  date  of  maturity  on  notes  and  bills. 

27.  Discuss  Days  of  Grace. 


Stevenson's  introductory  bookkeeping.  87 


SET  B^ 


MEMORANDA. 

To  be  written  in  the  same  manner  as  Set  B*. 


Feb.  1.  Student  commenoed  a  retail  dry-goods  business  this  day,  with  cash  on  hand  $1,500. 
Bought  of  J.  Fankhouser  a  bill  of  goods  for  $630.  Gave  him  your  note  at  30  days  with  inter- 
est at  6%.     Paid  February  rent  in  cash,  $35. 

Feb.  3.  Sold  to  K.  Cunkle,  on  account,  a  bill  of  goods  amounting  to  $45.  Sold  F.  M.  Dana,  on  his 
note  at  21  days,  with  interest,  a  bill  of  goods  amounting  to  $85. 

Feb.  4.  Keceived  from  D.  W.  McGilvray  a  bill  of  goods  amounting  to  $400.  Paid  for  the  same  by 
cash.  Sold  L.  M.  Frost  a  bill  of  goods  amounting  to  $125.  Keceived  $25  cash,  the  balance  on 
account.     Cash  sales  this  day,  $15. 

Feb.  6.  K.  Cunkle  paid  $25  on  his  account.  Received  cash  of  L.  M.  Frost  for  balance  of  his  ac- 
count.    Cash  sales,  $85. 

Feb.  8.  Sold  R.  Ross  a  bill  of  goods  amounting  to  $90.  Received  from  him  his  note  at  10  days 
with  interest  at  10%  for  $60,  and  cash  for  balance. 

Feb  10.  Sold  J.  J.  Comer  a  bill  of  goods  amounting  to  $140.  Received  $50  in  cash  and  his  note 
at  12  days  with  interest  at  10%  for  the  balance. 

Feb.  12.  Discounted  R.  Ross's  note  at  Citizens  Bank,  receiving  cash  for  the  proceeds.  Cash 
sales,  $125. 

Feb.  13.  Received  from  J.  Fankhouser  a  bill  of  goods  amounting  to  $75.  Paid  the  same  by  send- 
ing express  money-order.     Sold  L.  R.  Jones,  on  account,  a  bill  of  goods  amounting  to  $75. 

Feb.  15,   L.  R.  Jones  returned  $15  worth  of  goods  bought  on  the  13th. 

Feb.  16.  Sold  D.  W.  Hamer  a  bill  of  goods  amounting  to  $85.  Received  $40  cash,  the  balance  on 
account. 

Feb.  17.   Discounted  J.  J.  Comer's  note  of  the  10th  at  the  bank,  receiving  cash  for  the  proceeds. 

Feb.  19.  Granted  L.  R.  Jones  a  discount  of  12^%  on  the  amount  due  on  the  bill  of  the  13th,  owing 
to  defective  goods,  and  accepted  in  payment  of  balance  a  demand  note  of  D.  W.  Hamer  for 
$45,  given  Jan.  2,  drawing  interest  at  10%,  and  $7.50  in  cash. 

Feb.  20.   Cash  sales,  $45. 

Feb.  27.  F.  M.  Dana  paid  his  note  of  the  3d,  with  interest.  Cash  sales,  $80.  Discounted  our  note 
favor  J.  Fankhouser,  given  on  the  1st,  paying  the  proceeds  in  cash. 

Feb.  29.   Received  cash  of  D.  W.  Hamer  for  note  held  by  us,  and  interest  to  date  ;  also  balance  due 
on  account. 
Mdse.  inventory,  $890. 


38 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


To  guard  against  future  difficulties,  careful  attention  should  be  given  to  the  following  Mer- 
chandise account.  Notice  that  it  continues  through  several  months  and  represents  the  merchan- 
dise bought  and  sold  each  month,  and  is  made  to  show  the  loss  or  gain  each  month.  In  May  it 
was  closed  on  the  11th,  forwarded  on  the  24th  and  will  be  closed  again  at  the  end  of  the  month. 
The  inventories  represent  the  value  of  goods  on  hand  at  the  beginning  and  close  of  each  period. 
At  the  bottom  of  page  is  illustrated  the  method  of  forwarding  an  account  when  itcrowds  on  another 
or  one  side  reaches  the  bottom  of  the  page. 


MERCHANDISE  (or  any  property  account). 


1899. 

1899. 

Jan. 

2 

9 

300 

Jan. 

3 

9 

200 

(1 

3 

9 

4,200 

4 

9 

3,000 

(( 

6 

10 

1,000 

6 

10 

500 

u 

9 

11 

5,000 

7 

10 

600 

^i 

17 

12 

8,000 

10 

11 

4,000 

i( 

19 

13 

6,000 

S4S00 

12 
19 

11 
13 

700 
1,000 

(C 

24 

15 

500 

SBOOO 

22 

14 

10000 

8,000 

i( 

SI 

Oain, 

8,500 

26 
28 

16 
17 

4,000 
3,500 

86600 

Inventory, 

(C 

SI 

Inventory, 

19 

8,000 

33,500 

33,500 

Jan. 

31 

8,000 

Feb. 

3 

3,000 

Feb. 

28 

Oain, 

1,000 

(t 

6 

7 
18 

20 
20 
22 

600 

500 
900 

(( 

6000 

Inventory, 

(( 

S8 

Inventory, 

25 

4,000 

9,000 

9,000 

Feb. 

28 

4,000 

Mar. 

4 

1,800 

Mar. 

6 

Oain, 

25 

800 

(( 

16 

27 

3,200 

- 

SI 

200 

6000 

R  n  n  n 

29 

5,000 

30 

5,000 

Apr. 

6 

12,000 

Apr. 

7 

300 

8 
9 

30 
31 

600 
400 

(( 

<( 

10 

31 

700 

(( 

12 

32 

1,000 

fi 

18 

34 

70 

20 
24 

35 
37 

330 

700 

(( 

26 

38 

900 

6000 

(t 

SO 

Inventory, 

4,600 

Inventory, 

t( 

SO 

Loss, 

41 

2,500 

12,000 

12,000 

Apr. 

30 

4,500 

May 

4 

432 

May 

2 

40 

964 

(( 

6 
10 

43 
44 

532 

1100 

Inventory, 

(( 

11 

Inventory, 

45 
45 
46 

4,364 

5,464 

5,464 

May 

11 

4,364 

May 

12 
14 
16 

99 
119 

15 

7^ 

(( 

368 

28 

t( 

19 

48 

494 

62 

Ford., 

L.  p. 

24 

(( 

24 

Ford., 

49 

L.  p. 

24 

889 

90 

1964 

1,964 

70 

4,364 

70 

SET  C^ 


MARCH. 


Objects. — (1)   Computations  and  arrangement.     (2)   Drill  in  Journalizing.     (3)   The  keep- 
ing of  a  bank  account.     (4)   Form  and  construction  of  business  papers. 


Instructions. — The  books  are  kept  as  in  the  preceding  sets.  Give  much  attention  to  neat- 
ness of  work,  accuracy,  good  writing,  and  figures.  Do  not  have  a  rough,  carelessly  written  set 
of  books  in  which  the  work  is  done  preparatory  to  transferring  to  your  regular  books.  Do  your 
best  work  all  of  the  time,  and  think  before  acting. 


Washington  studied  the  intricate  forms  of  business.  He  copied  out 
bills  of  exchange,  notes,  receipts,  and  all  the  varieties  of  the  class,  with 
a  precision  and  elegance  that  were  remarkable. — Irving. 


40  STEVENSON 'S   INTRODUCTORY   BOOKKEEPING. 


STEPS  FOR  SET  C^ 


1.  Journalize  —  Omit  writing  of  Day  Book. 

2.  Rule  and  Foot  Journal,  When  a  page  of  the  Journal  is  full,  rule  a  line  across  the 
second  line  from  bottom  of  page  across  amount  columns.  Foot  in  lead-pencil,  then  in  ink,  and 
carry  to  top  of  next  page.    It  is  evident  that  they  are  footings;  hence  no  explanation  is  necessary. 

3.  Post. 

4.  Lead-Pencil  Footings  op  Accounts. 

5.  Trial  Balance  of  Differences,  only,  in  a  six-column  Balance  Sheet. 

6.  Close  Accounts  showing  Losses  or  Gains. 

7.  Fill  out  Loss  and  Gain  Columns  in  Balance  Sheet. 

8.  Close  Loss  and  Gain  Account. 

9.  Close  Proprietor's  Account. 

10.  Fill  out  Eesource  and  Liability  Columns  in  Balance  Sheet. 

11.  Close  Accounts  remaining  open. 

12.  See  that  Faces  of  all  Accounts  Agree  with  amounts  appearing  in  resource  and  lia- 
bility columns  of  Balance  Sheet. 


MEMOEANDA  FOE  MAECH.— SET  C^ 


Mar.  1.   You  begin  a  provision  business  and  invest,  cash  in  safe,  $2,000;  cash  on  deposit  in  First 

National  Bank,  $2,500. 

Note. — There  are  two  ways  of  keeping  an  account  of  the  deposits  in  a  bank.  The  usual  way  is  to  con- 
sider the  bank  as  the  strong  box  of  the  business,  and  rely  upon  the  banfe  pass-book  to  disclose  th© 
amount  in  bank,  or  carry  the  balance  on  the  stub  of  the  check-book.  In  this  plan  the  cash  put  in 
bank  is  considered  still  on  hand,  as  it  is  available  at  any  time.  Most  business  houses  follow  this 
plan.  The  second  way  is  to  keep  a  bank  account  in  the  Ledger,  debiting  bank  for  all  deposits,  and 
crediting  for  all  withdrawals  by  check.     The  latter  plan  will  be  followed  in  this  set. 

Pay  store  rent  for  March  in  cash,  $50;  buy  books  and  fixtures  of  W.  S.  Picken  &  Co.,  to  the  value 
of  $150,  giving  in  payment  your  note  at  10  days,  with  interest  at  6%. 
(Debit  Expense,  $200.) 

Mar.  2.  Buy  from  A.  T.  Mills  &  Co.,  Chicago:  200  bbls.  beef  at  $8,  $1,600;  100  bbls.  pork  at  $10, 
$1,000;  750  lbs.  shoulders  at  9c.,  $67.50;  3,000  lbs.  hams  at  lOc,  $300;  45  cwt.  sides  at 
$8.50,  $382.50;  5,000  lbs.  lard  at  8c.,  $400.  Total,  $3,750.  Give  in  payment  your  note  at  30 
days,  $3,000;  and  the  following  check  for  the  balance  : 


Stevenson's  intkoductory  bookkeepinq.  41 


Emporia,  Kan., .¥?£•. ?..» 1891....      J^o....}... 


FIRST  NATIONAL  BANK 

OF  EMPORIA. 


Pay  to  the  order  of. ^.: ^ Plcken  &  Co  .j ^750.00 

Seven  hundred  fifty  and  no/lOO  Dollars 


STUDENT. 


Note. — The  check  was  drawn  in  favor  of  W.  S.  Picken  &  Co.,  at  the  request  of  A,  T.  Mills  &  Co. 

Mar.  3.  Sell  Shepherd  &  Baxter,  Emporia,  on  their  note  at  30  days:  10  bbls.  beef  at  $10.50,  $105; 
1,250  lbs.  lard  at  8c.,  $100;  1,400  lbs.  hams  at  lie,  $154;  15  cwt.  sides  at  $9,  $135;  24  bbls. 
pork  at  $14,  $336.     Total,  $830. 

Mar.  4.  Sell  M.  A.  Bailey,  Osage  City:  50  bbls.  beef  at  $10.50,  $525;  10  bbls.  pork  at  $14,  $140; 
^  1,200  lbs.  hams  at  lie,  $132.  Total,  $797.  Receive  in  payment  his  note  at  20  days  for  $500; 
balance  on  account. 

Mar.  8.  Buy  from  Clarke  &  Co.,  St.  Louis:  100  bbls.  beef  at  $9,  $900;  1,500  lbs.  hams  at  lOc, 
$150.     Total,  $1,050.     Give  in  payment  check  for  $500 ;  balance  on  account. 

Mar.  10.  Sell  Reid  &  Co.,  Topeka:  50  bbls.  pork  at  $14,  $700;  6  cwt.  sides  at  $8,  $48;  10  bbls. 
beef  at  $10.50,  $105.  Total,  $853.  Receive  in  payment  their  note  at  10  days,  with  interest, 
for  $500,  and  their  check  i^  357  on  the  Topeka  State  Bank  for  the  balance. 

Mar.  14.  Pay  your  note  of  the  1st,  favor  of  W.  S.  Picken  &  Co.,  and  interest  on  same,  by  check. 
Face  of  note,  $150.     Interest,  13  days,  33c. 

Mar.  15.  Discount  M.  A.  Bailey's  note  of  the  4th,  at  your  bank,  and  receive  cash  for  the  net  pro- 
ceeds.    Face  of  note,  $500.     Discount  off,  12  days,  $1.     Net  proceeds,  $499. 

Mar.  16.   Deposit  cash  on  hand  in  the  bank. 

Note. —  The  "cash  on  hand  "  is  the  difference  between  the  amount  received  and  the  amount  paid  out, 
and  in  this  set  does  not  include  what  is  in  bank. 

Mar.  17.   Discount  your  note  of  the  2d,  favor  A.  T.  Mills  &  Co.,  and  pay  the  proceeds  by  check. 

Face  of  note,  $3,000.     Discount  off,  18  days,  $9.     Proceeds,  $2,991. 
Mar.  18.   Pay  Clarke  &  Co.  on  account,  by  check,  $200. 
Mar.  22.   Withdraw  $100  from  bank  by  check,  for  your  private  use. 

Note. —  As  you  have  no  partner  it  is  just  as  well  to  debit  yourself.  If  you  had  a  partner  it  would  be 
advisable  to  debit  your  "private"  account  which  would  be  closed  into  your  "firm  "  or  proprietor's 
aiccount  at  the  time  of  finding  your  worth. 

Mar.  23.   Receive  from  Reid  &  Co.,  for  their  note  of  the  10th,  and  interest,  cash  in  full.     Face  of 

note,  $500.     Interest,  13  days,  $1.08.     Receive  from  M.  A.  Bailey,  on  account,  his  note  at  15 

days,  with  interest,  $197. 
Mar.  24.   SeU  White  &  Wilson,  Reading:   10  bbls.  pork  at  $14,  $140;  1,500  lbs.  hams  at  lie,  $165; 

750  lbs.  shoulders  at  9o.,  $67.50.     Total,  $372.50.     Receive  in  payment  their  note  at  30  days, 

$200;  balance  on  account. 


42 


STEVENSON  S  INTRODUCTORY  BOOKKEEPING. 


Mar.  26.  Discount  Shepherd  &  Baxter's  note  of  the  3d  at  the  bank  and  leave  the  proceeds  to  your 
credit.  Face  of  note,  $830.  Discount  off,  10  ds.,  $1.38.  Proceeds,  $828.62.  Pay  by  check 
for  advertising,  $25. 

Mar.  27.  Buy  from  Goodrich  &  Co.,  Chicago:  150  bbls.  pork  at  $10,  $1,500;  1,000  lbs.  shoulders 
at  9c.,  $90;  Total,  $1,590.  Give  in  payment  check  for  $1,000;  balance  on  account.  Sell  W.  C. 
Holman,  Hartford:  3,000  lbs.  lard  at  9c.,  $270;  15  cwt.  sides  at  $9,  $135;  50  bbls.  pork  at  $14, 
$700.  Total,  $1,105.  Receive  in  payment  their  check  No.  63  on  the  Citizens  Bank,  $905,  and 
their  note  at  30  ds.  for  balance.     Sent  them  the  following  receipted  bill: 


w. 

STATEMENT. 

Emporia,  Kan., M?£..' ^'7 , -j^gg 

Z,    HOLMAN,    Hartford, 

Bought  of  STUDENT. 

terms:   Cash  or  Bankable  Paper. 

' 

1 

3000    lbs.    Lard   at    9c. , 
15    cwt.    Sides    at   $9, 
50   bbls.    Pork   at   $14, 

Rec'd  payment   4/27/96. 
STUDENT. 

270 
135 

700 

1105 

Mar.  28.   Keceive  from  White  &  Wilson,  on  acct.,  $72.50  cash  and  their  note  at  10  ds.,  $100. 
Mar,  29.   Pay  Clarke  &  Co.  on  acct.,  by  check,  $150,  and  your  note  at  30  ds.,  $200. 
Mar.  30.   Sell  at  auction  all  the  goods  you  have  for  cash,  $2,567.85.     Deposit  in  bank  cash  on  hand. 
Pay  clerk's  salary  for  March  by  check,  $45.     Pay  dray  age  for  March,  $65,  by  check. 
Inventory. —  Expense — fixtures,  and  furniture,,  valued  at  $135. 

Note.— While  Expense  account  usually  shows  a  loss  for  the  full  amount  with  which  it  is  debited,  yet  if 
some  article  for  which  Expense  was  debited  is  still  on  hand  and  possesses  value  an  Expense  inven- 
tory is  necessary,  thus  reducing  the  present  loss  by  that  amount. 


aiEVKNSON  S   INTRODUCTORY   BOOKKEEPING. 


43 


QUESTIONS  ON  SET  C^ 


1.  What  are  the  two  methods  of  keeping  an  account  of  deposits  and  withdrawals  from  a  bank? 

2.  Which  is  the  common  and  better  method  ? 

3.  If  a  bank  account  is  kept,  does  it  belong  to  the  Personal,  Property  or  Causal  class  ? 

4.  Does  the  bank  account  usually  show  a  resource  or  loss  ? 

5.  What  circumstances  may  make  it  show  a  loss  ?  a  liability  ? 

6.  If  no  bank  account  is  kept,  what  entry  will  be  made  for  the  payment  to  John  Smith  on  account  by  check  ? 
Ans.   Smith  debited  and  cash  credited. 

7.  Under  what  circumstances  can  Expense  account  have  a  resource  inventory  ?  a  liability  inventory  ? 

8.  Give  in  order  the  steps  taken  in  writing  Set  C  ^. 

9.  Explain  the  ruling  in  a  Journal. 

10.  Explain  the  ruling  in  a  Ledger. 

11.  Explain  the  closing  of  Cash  account. 

12.  Explain  the  closing  of  a  Personal  account. 

13.  What  does  a  six-column  Balance  Sheet  contain. 

14.  Why  is  a  Balance  Sheet  necessary  ? 

15.  Explain  the  ruling  and  balancing  of  a  Balance  Sheet. 

16.  What  was  the  gain  or  loss  per  cent,  on  Mdse.  ? 

17.  What  was  the  per  cent,  of  loss  or  gain  on  your  investment? 

18.  What  per  cent,  of  gain  is  considered  a  fair  profit  on  an  investment ' 

19.  Write  all  commercial  papers  used  in  the  set. 


THE  SKELETON  LEDGEE. 


The  Skeleton  Ledger  is  sometimes  used  preparatory  to  the  posting,  or  after  the  posting  to  the 
regular  books,  as  a  test  of  accuracy,  means  of  discovering  a  wrong  entry,  etc.,  etc.  It  can  be  used 
by  the  student  in  placing  accounts  on  the  blackboard.  The  following  are  a  few  of  the  accounts 
for  set  C^: 


Cash. 


2000. 

50. 

353. 

2802. 

499. 

4046.43 

501.08 

689  8  48 

905. 

72.50 

2567.85 

6898  43 

/ 

Bank. 


2500. 

750. 

2802. 

500. 

828.62 

150.33 

4046.43 

2991. 

200. 

100. 

25. 

1000. 

150. 

45. 

65. 

Mdse. 


Bills  Receivable. 


0750. 

830. 

1050. 

797. 

1590. 

853. 

2567.85 

372.50 

8067  86 

1105. 

3967  60 

5000.  S5L 

8957.85 

8957.85 

830. 

500. 

500. 

500. 

500. 

830. 

197. 

1880 

200. 

697.  Bal. 

200. 

100. 

SEli? 

2527. 

2527. 

Bal.  697. 

Bills  Payable. 

150. 

150. 

3000. 

3000. 

200. 

Expense. 


200. 
25. 
45. 
65. 


Interest. 


.33 


1.08 


Discount. 


1. 
1.38 


44  Stevenson's  introductory  bookkeeping. 


SET  C\ 


MEMORANDA.— DEY- GOODS  SET. 

Mar.  1,   Loar  &  Co.  began  a  Dry-Groods  business,  and  invested,  cash  in  safe,  $500;  cash  on  deposit 

in  Citizens  National  Bank,  $3,500. 

Bot.  fixtures  and  books,  $250.     Gave  in  payment  check  on  Citizens  National  Bank. 
Mar.  3.   Bot.  C.  O.  Smith  &  Co.,  St.  Louis:   4  bolts,  160  yds.,  Pacific  delaines,  at  15c.;  3  bolts,  120 

yds.,  striped  lusters,  at  14o.;  6  bolts,  260  yds.,  ginghams,  at  lie;  2  bolts,  70  yds.,  prints,  at  7c. 

Gave  in  payment  check  for  $25;  balance  on  account. 
Mar.  4.   Bot.  of  C.  H.  Ewing  &  Co.,  Topeka:   3  bolts,  120  yds.,  bleached  cotton,  at  18c.;  2  bolts,  60 

yds.,  brown  cotton,  at  8c.;  3  bolts,  90  yds.,  fine  muslins,  at  25c.;  2  bolts,  80  yds.,  flannels,  at  35o. 

Gave  in  payment  note  at  10  days  for  $50  and  check  for  the  balance. 
Mar.  6.   Sold  R.  O.  Small:   20  yds.  striped  lusters,  at  20c.;  32  yds.  gingham,  at  15c.     Reed,  in  pay- 
ment his  check  on  the  First  National  Bank  for  $5;  balance  on  account. 
Mar.  6.   Sold  W.  E.  Johnson,  on  his  note  at  10  days:   54  yds.  prints,  at  12c.;  10  yds.  fine  muslin,  at 

35c.;  15  yds.  brown  cotton,  at  12c. 
Mar.  7.   Bot.  of  A.  W.  Lynn  &  Co.,  Kansas  City,  on  our  note  at  15  days:   1  doz.  prs.  gents'  kid 

gloves,  $20;  ^  doz.  prs.  ladies'  kid  gloves,  $16. 
Mar.  9.   Paid  one  month's  rent,  in  cash,  $40.     Paid  for  stationery  and  postage,  in  cash,  $10. 
Mar.  10.   Discounted  W.  E.  Johnson's  note  of  the  6th,  leaving  proceeds  at  the  Citizens  National 

Bank. 
Mar.  11.   Bot.  of  W.  G.  Muir  &  Co.,  Chicago:   5  bolts,  50  yds.,  velvet  ribbons,  at  50c.;  3  bolts,  30 

yds.,  satin  ribbons,  at  15c.;  5  bolts,  50  yds.,  fine  satin  ribbons,  at  40c.;  5  Ottoman  shawls,  at  $7. 

Gave  in  payment  our  note  at  60  days  for  $75;  a  check  for  the  balance. 
Mar.  12.   Sold  Miss  Lizzie  Humphrey,  for  cash:   16  yds.  Pacific  delaine,  at  22c.;  12  yds.  bleached 

cotton,  at  26c.;  1  bolt,  10  yds.,  velvet  ribbon,  at  65c.;  1  pr.  kid  gloves,  $1.60.     Deposited  all 

cash  in  hand  in  Citizens  National  Bank. 
Mar.  17.   Paid  our  note  of  the  4th  by  check.     Bot.  of  Geo.  Crisman  &  Co.,  Cincinnati:   5  pes.,  200 

yds.,  satins,  at  $2;  4  pes.,  156  yds.,  silks,  at  $3;  3  pes.,  120  yds,,  velvets,  at  $5.     Gave  in  pay- 
ment our  note  at  20  days  for  $1,000;  check  for  $200;  balance  on  account. 
Mar.  18.    Sold  Miss  Agnes  Newbold,  on  her  note  at  30  days:   12  yds.  velvet,  at  $7.50;  10  yds.  silk, 

at  $4.25;  1  bolt,  10  yds.,  satin  ribbons,  at  60c.;  5  yds.  velvet  ribbon,  at  65c. 
Mar,  19,   Discounted  our  note  of  the  11th,  favor  Muir  &  Co.,  and  paid  proceeds  by  check.     Sold 

R.  O.  Small:   2  prs.  kid  gloves,  at  $2;  1  bolt,  40  yds.,  bleached  cotton,  at  26c.;  1  bolt,  36  yds.. 

Pacific  delaine,  at  22c.     Reed,  in  payment  a  check  on  Emporia  National  Bank  for  $10;  balance 

on  account. 
Mar,  20,    Discounted  Miss  Newbold's  note  of  the  18th,  and  deposited  proceeds  in  bank.     R.  O. 

Small  returns  1  pair  of  gloves,  purchased  on  the  19th,  because  imperfectly  made. 
(Debit  Mdee.,  credit  Small.) 
Mar.  22.    Sold  W.  E.  Johnson,  for  cash,  45  yds,  brown  cotton,  at  12c.;  80  yds.  fine  muslin,  at  35c.; 

20  yds,  fiannels,  at  45c.     Paid  clerk's  salary  for  3  weeks,  $45, 
Mar.  23.   Paid  bill  for  drayage,  $18,  by  check.     Discounted  our  note  of  the  17th,  favor  Crisman  & 

Co.;  paid  proceeds  by  check. 
Mar.  25.   Paid  our  note  of  the  7th,  now  due,  by  check. 
Mar.  31.   On  the  evening  of  the  30th  a  wind-storm  blew  off  the  roof  of  store  and  our  goods  were 

damaged  by  a  rain.     C.  O.  Smith  &  Co.  have  agreed  to  take  entire  stock  of  goods  for  $1,500. 

Received  in  payment  their  note  at  60  days  for  $750;  cash,  $250;  balance  on  account. 

Inventory. — Fixtures,  $125. 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


45 


COMMERCIAL  PAPER. 

CHECKS,  NOTES,  DRAFTS,  INDORSEMENTS,  LETTER  OF  CREDIT,  ETC.,  ETC. 


A  check  is  an  order  by  a  depositor  on  the  bank  in  which  he  has  money  or  credit.  The  fol- 
lowing form  represents  a  check,  together  with  the  stub  of  the  check-book  from  which  the  check 
was  taken : 


To 


Bal.  hrot.  for'd,.. 

...._J/1.._ 18. 

Peters 


For 

Amt 

Balance 
JVo. 


HdW.     Co. 
McLse. 


90 


24  75 
65  25 


The  State  Bank  of  Topeka, 

Topeka,  Kan. 

Pay  to  the  order  c/.f ..^.1?£S  ...Hdw .  C  o_.  ,     ^24.75 
Twenty-four   and   75/100  Dollars 

STUDENT. 


In  the  above  check  Student  is  called  the  Drawer,  Peters  Hdw.  Co.  the  Payee,  and  the  State 
Bank  of  Topeka  the  Drawee.  The  business  relations  between  Student  and  the  Bank  are  :  {a)  The 
Bank  has  money  on  deposit  belonging  to  Student,  {h)  Student's  credit  is  good  at  the  Bank — 
they  have  permitted  him  to  overdraw  his  account. 

The  business  relations  existing  between  Student  and  the  Peters  Hdw.  Co.  may  be :  {a)  Prob- 
ably Student  owes  Peters  Hdw.  Co.  (J)  Student  buys  property  of  the  Payees,  (c)  Student 
makes  the  Payees  a  present,  {d)  Student  makes  a  loan  to  the  Payees,  {e)  Student  sends  to 
Payees  to  be  used  for  speculative  purposes.  {/)  Student  sends  to  Payees  in  payment  of  his  note 
now  due.  {g)  Student  owes  John  Smith  and  Smith  owes  Peters  Hdw.  Co.,  and  Student  sends  to 
Payees  to  apply  on  Smith's  account. 

To  journalize  any  transaction  in  which  any  form  of  commercial  paper  is  used,  the  eight  prin- 
ciples of  debit  and  credit  only  are  needed. 

What  is  the  entry  of  the  Drawer  under  each  of  the  relations  given  ? 

What  is  the  entry  of  the  Payees  under  each  of  the  relations  given  ? 

The  following  is  a  form  of  a  certified  check.  It  is  presented  to  the  cashier  with  the  request 
that  he  certify  to  its  being  worth  its  face.  On  writing  "Certified"  and  his  name  across  the  face, 
the  bank  becomes  responsible  for  its  payment  when  presented: 


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600.00 


lola,  Kan.,.. b^l.'. .??. 189. 


8 


FIRST  NATIONAL  BANK. 

■D       J.    J.7         ^        ^  W.    A.    Cook 

Fay  to  the  order  of- 

Six   hundred  and  no^lOO  Dollars 

J.    H.    HILL. 


JVo.. 


26. 


What  are  the  possible  entries  of  the  parties  to  the  above  check  ? 


46  Stevenson's  introductory  bookkeeping. 


rORMS  or  NOTES. 


#  A^±'.?± Leavenworth  Kan., ^^PL'. ? 189 1..... 

...?".?^£.?..®....H9.-^.?.?..?. after  date,  I  promise  to  pay  to  the  order  of 

Student   &  Co. 

Four  hundred   sixty-four   and   24y''lOO  Dollars 

Value  received.    PayaMe  at  Citizens  Bank. 

jy^ 2310  J).    S.    KELLY. 


The  Maker  of  the  note  is  D.  S.  Kelly.    The  Payee  is  Student  &  Co. 

What  were  the  possible  business  relations  of  the  Maker  and  Payee  which  caused  the  note  to  be  drawn  as  above? 


iZi?  •  54 Emporia.  Kan ??.°  • 24 ^^^8 


?:^.^.^.Z days  after  date, ^.®. promise  to  pay 

to  the  order  of  FIRST  NATIONAL  BANK  OF  EMPORIA,   KAN, 

One   thousand   seven  hundred  eighty-nine   and  54^/100  j^oUdj^g 

payable  at  the  FIRST  NATIONAL  BANK  OF  EMPORIA,  KAN.,  with  interest 
at  the  rate  of  10  per  cent,  per  annum  from  maturity  until  paid,  value 
received,  waiving  henefit  of  exemption  laws, 
p  Q     Emporia.  THOS.    H.    DINSMORE,    Jr. 

j)^^      Feh.    25.  D.    S.    KELLY. 


This  is  a  common  form  of  note.  The  interest  for  63  days  is  computed  on  the  face  of  the  note,  and  the  maker 
receives  the  difference  only.  This  gives  the  bank  the  interest  in  advance,  and  the  transaction  being  in  the  nature 
of  a  discounting  of  the  paper,  enables  the  bank  to  sometimes  exact  more  than  the  maximum  rate  of  interest  allowed 
by  law.    D.  S.  Kelly  may  be  a  joint  maker  or  a  surety  for  the  payment  by  T.  H.  D. 


*  '75.00  ^        .     ^  July   9      _„  8 

$ Emporia,  Kan., t^ 189..  ...... 

.7*..^.?'..^Z. ^Z.? after  date, .' of  the  County  of. ;^Z.9n.' State  of 

Kansas,  promise  to  pay  to  the  order  of   PBTBRS   HARDWARE   COMPANY,    Emporia,   Kan.,   the  sum  of 

Seventy-five  and  no/lOO  .       ^^^^ 

/  DOLLARS, 

fi  3  1"  F* 

with  interest  at  10  per  cent,  per  annum,  after until  paid. 

Value  received.  The  indorsers,  grantors  and  assignors  severally  waive  presentment  for  payment,  protest  and  notice  of 
protest  for  non-payment  of  this  note,  and  all  defense  on  the  ground  of  any  extension  of  time  of  its  payment  that  may  be  given 
by  the  holder  or  holders,  to  them  or  either  of  them,  or  to  the  maker  or  makers  thereof. 

This  note  is  given  for  the  purchase  of .9??.. ??!in. .."Wag-on, 

and  the  express  conditions  of  the  sale  and  purchase  are  such  that  the  title,  ownersliip  and  right  of  possession  of  the  property. 
aforesaid  does  not  pass  from  PETERS  HARDWARE  COMPANY  until  this  note,  interest  and  costs  are  paid  in  full. 

For  the  purpose  of  obtaining  credit f certify  that t .own  iD....?^.y  ..own  name....^®.9 acres  of  land,  with...®.9..... 

acres  improved,  worth  $  ..r®.9...over  all  incumbrances ; .?. own  $..?.99.... worth  of  personal  property  over  all  indebtedness. 

C^"  Payable  with  exchange.  ^    a.       ■■, 

.O.^.ress.J^2lllx[=^^^^^--'^-^^\  *-• ^•- ™«*?- 

T,                    S  ....^... miles  east    >                       0/,/-.r 
Kan  .  tniles  west     When  due ./ 1.9 

L      OF  SAID  P.  O.       J  J 


Stevenson's  introductory  BooKKEEPiNa. 


47 


S...^±^.:.±9. B:aT/s  City,  Kan., March   12 189.1 

??^.-!:B.?.^Z days  after  date, !^.® promise  to 

pay  to  the  order  of. '^...'. ^.' ?^^^? 

Eight  hundred  forty-five  and  40/lOO  Dollars 

at T.^.®.....?.^.!.^..?.?.?.?.....?.^.-'^.-^^ with  interest  at  the  rate 

of....^.. per  cent,  per  annum  from ?.?_.? until  paid.    Value  received. 

p  Q      Amerious.  N.    0.    GOOD. 

Dice 6/13 I.^^^WILL^^PAY. 


I.  W.  Pay  is  an  indorser  for  N.  O.  Good,  his  friend.  This  is  a  common  practice  and  almost 
a  necessity;  but  he  who  can  keep  from  obliging  his  friends  in  this  way  will  save  himself  much 
annoyance  and  quite  likely  loss. 


COLLATERAL  NOTE. 


700.00 


™        -    ir  June   6  ^„„  9 

Emporia,  Kan., 189 


Ninety 


.Days  after  date, promise  to  pay  to  the  order  of 


TKB    Hjl»iffP*OI^IA.    NA.TIONA.Ij    BA.N"IC,   at  the   office   of  said  Bank,   in  Emporia,   Kan., 

Seven  hundred  and  no/lOO 

/ Dollars, 

with  interest  at  the  rate  of  10  per  cent,  per  annum  after  maturity  until  paid.  Value  received.  Having  deposited  with  said  bank, 
as  collateral  security,  with  authority  to  sell  the  same,  without  notice,  at  public  or  private  sale,  at  the  option  of  said  Bank,  on  non- 
performance of  this  promise : 

Note  of  Jas.  Smith  for  $475.00,  dated  June  3,  1899,  and 
due  in  two  years;  note  of  Wm.  Workman  for  $675.00,  dated 
September  1,  1897,  and  due  in  one  year. 


^     8349         „  Sept.    7, 

JVV> Due ".. ?.. 

_p  ^    Howard,    Kan. 


.189 


W.    B.    BROWN. 


Who  is  the  Maker  of  the  above  note  ?    The  Payee  ?    Define  protest.     ( See  commercial  terms  defined.) 
What  would  be  the  consequences  if  Brown  should  not  be  able  to  pay  at  maturity  ? 


-Q  i 
(D  i 


^  i  o  ; 


^  5=1  I  o  :  o2  i 


RECEIPT   FOR   PAYMENT   FOR   GOODS. 

Topelca,  Kan.,... 
Received  from                    ^^-    ^'    ^^^^ 

6/18         180 

Twenty-five  and  no/lOO 

Dollars, 

For  5   Sets  Kansas   Statutes. 

^   25.00                                                 GEO.    W. 

CRANE   &   CO.             i 

1 

e     o     o     S 

c;     ^     fc,     ^ 

It  is  best  to  demand  a  receipt  when  payment  of  a  bill  is  not  made  by  check.     If  made  by 
check,  the  check  serves  as  a  receipt. 


48 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


CERTIFICATE  OP  DEPOSIT. 


<*  g 


Cl^e  (Ettizens  3ank  of  (Emporia. 


JVo 


1649 


•    r.  Jan.    31         ,„„  8 

Emporia,  Kan., 189 


has  deposited  with  this  Bank 


Wm.    Brunswick 

Seven  Hundred   and   25/100  Dollars  s.'^^'^  ^. 

W.    B.    Steenbure 

payable  to  the  order  of. .r?. in  current  funds  on  return  of 

this  Certificate  properly  indorsed months  after  date,  with  interest  at  the  rate  of 


eight 

~ per  cent,  per  annum. 


NO   INTEREST  AFTER  MATTJRITT. 


H.    W.    FISHER, 

Cashier. 


On  July  1,  1898,  Steenburg  sold  the  certificate  to  J.  N.Wilkinson  at  6%  discount.  At  maturity,  Wilkinson 
cashed  the  certificate  at  the  bank.  Write  the  indorsements  appearing  on  the  back  of  the  certificate.  How  much 
did  Steenburg  receive  ?    What  did  Wilkinson  receive  ? 

INDORSEMENTS  ON  NEGOTIABLE  PAPER. 

"When  the  payee  transfers  his  bills  to  another,  it  is  necessary  for  him  to  write  his  name  across 
the  back,  when  he  becomes  an  indorser.  There  are  various  kinds  of  indorsements  for  various  pur- 
poses, and  dependent  upon  circumstances.  There  are  two  kinds  of  indorsements  in  daily  use 
among  business  men,  viz.,  "blank,"  and  "full,"  and  several  others  used  to  a  greater  or  less  extent 
and  having  their  peculiar  uses.  In  general,  an  indorsement  has  two  effects  —  first,  to  transfer  the 
rights  of  indorser  to  holder;  and  second,  to  guarantee  the  payment  as  expressed  on  the  face.  The 
indorsement  should  always  be  written  across  the  left  end  of  the  back,  or  with  the  left  end  at  top 
when  writing  it. 

Indorsing  negotiable  paper  in  "blank"  makes  it  payable  to  bearer,  and  the  holder  has  the 
right  to  make  a  full  indorsement  of  it  by  inserting  what  he  pleases  above  the  indorser's  name. 
There  is  as  much  risk  in  sending  through  the  mail  a  check  or  draft  indorsed  in  "  blank  "  as  in  send- 
ing the  currency. 

The  "full"  indorsement  necessitates  identification,  and  is  best  for  all  ordinary  purposes.  The 
other  indorsements  given  are  nearly  self-explanatory.  Consult  a  work  on  commercial  law  for  a  full 
explanation  of  them. 

The  terms  endorsement  and  indorsement  are  synonyms,  and  either  may  be  used. 

INDORSEMENTS. 


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STEVENSON  S  INTRODUCTORY   BOOKKEEPING. 


49 


FORMS  OF  DRAFTS. 

The  draft  is  the  result  of  buying  and  selling  "  on  time,"  a  necessity  on  account  of  the  difficulty 
of  transmitting  values,  and  a  means  whereby  a  representative  of  value  may  be  created  to  supply  a 
deficiency.  Without  checks  and  drafts  the  business  of  the  United  States  could  not  be  conducted. 
They  are  the  larger  part  of  the  blood  of  commerce. 

There  are  three  original  parties  to  a  draft,  viz. :  (1)  The  Drawer.  (2)  The  Drawee.  (3)  The 
Payee.  The  Drawer  asks  the  Drawee  to  pay  the  Payee.  The  business  relations  existing  between 
the  Drawer  and  Drawee  are  various,  although  the  usual  one  is  that  the  Drawee  owes  the  Drawer. 
The  usual  relation  between  the  Drawer  and  the  Payee  is  that  the  Drawer  owes  the  Payee,  yet  there 
may  be  many  others. 

FORM   OP   SIGHT-DRAFT. 


#....?.?.?..-..9.9...  Spokane,  Wash., ^.^^...3 189.^...... 

At sight , ^^y  tQ  ^j^^  Qj,^^^  ^y"  Albert   T. Mills 

Nine  Hundred  Fifty-six  and  no/^100  Dollars 

value  received,  and  charge  to  the  account  of 
r£Q      E.    R.    Shepherd, 

St.  John,  Oregon. 


Geo.  E.  Wilkinson. 


What  is  the  entry  of  all  of  the  parties  under  the  most  common  relation? 

The  following  is  a  common  and  probable  illustration  of  the  circumstances  leading  to  the  draw- 
ing of  the  above  draft:  On  April  1,  1899,  Albert  T.  Mills,  of  St.  John,  sold  to  Geo.  E.  Wilkinson, 
of  Spokane,  Wash.,  $956  worth  of  goods  on  30  days'  time,  and  G.  E.  Wilkinson,  on  April  16,  sells 
$956  worth  of  goods  to  E.  R.  Shepherd  on  15  days'  time.  On  May  3d  Wilkinson  wishes  to  pay 
Mills,  and  therefore  draws  the  above  draft  on  Shepherd. 

FORM   OF   DRAFT   PAYABLE   A   DEFINITE   TIME   AFTER   SIGHT. 


tr- 

05 

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tH 

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<1 

^....Z.?..*..?.? Independence,  Kan., ?..?.5..-. .?. 189.2.. 

FIRST  NATIONAL  BANK. 

^5.J.^£...l^y?..' ?.:^Sht, ^^y^^ Ey?.?l.£.?. or  order, 

?.?Z.®£!:Z.:.?3:S5^.....^^?:..£?Zi?o _ ^^^^^^^^ 

value  received,  and  charge  to  the  account  of 

rp    Hugh  Durham, 

■ " '      RAYMOND  OVESON . 

Mankato ,  Kan.      


In  the  above  draft  the  Drawer  and  Payee  are  one.  However,  the  Drawer  may  have  sold  it  to 
some  one  who  presents  it  to  the  Drawee  for  acceptance.  In  such  a  case,  the  Drawer  would  write 
the  following  indorsement  on  the  left  end  of  the  back  of  the  draft :  "  Pay  to  John  Smith  or  order, 
Raymond  Oveson,"  or  he  could  have  transferred  it  by  simply  writing  his  name  on  the  back  with- 


—4 


50 


STEVENSON  3  INTRODUCTORY  BOOKKEEPING. 


out  further  comment.  The  effect  of  the  indorsement  would  be  :  First,  to  transfer  the  title  to  the 
Indorsee,  and  second,  to  make  the  Indorser  responsible  in  case  payment  should  be  refused  by  the 
Drawee.    The  acceptance  of  a  draft  by  the  Drawee  makes  it  a  Bills  Payable  to  him. 


4*1 

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CD 

8 

FORM   OF  TIME   SIGHT-DRAFT. 


222.00 


Leavenworth,  Kan., £^^.?.....Z 189.?... 


FIRST  NATIONAL  BANK. 


A1...1®^....^^Z? ^.^^.1 pay  to 

i:£?.?.: ^.: Stevenson ^^  ^^^^^ 

Two  hundred   twenty- two   and  no/^100  Dollars 

value  received,  and  charge  to  the  account  of 
j,^   W.    M.    Seaman, 

Osage  City,  Kan.        JNO .  Q.  TEFFT. 

JVo., 


1084 


How  does  this  draft  differ  from  the  one  which  precedes  it  ?     When  is  it  due  ?     Where  is  it  to  be  paid  ?    By 
whom  is  it  to  be  paid  ?    Ana.   The  Bank.    Make  the  entries  of  all  the  parties. 


FORM   OF   TIME   DRAFT. 


W 

n 

OS 

t-i 

Oi 

tf 

00 

o 

1— 1 

^ 

ft 

0) 

^ 

m 

d 

Tl 

w 

® 

O 

A 

0) 

V 

o 

-t\ 

845.56 


Emporia,  Kan. 


Sept.    24         ^^^  9 


Thirty  days  after  date,  pay  to .?..• M.* ^.}:^?.}:^.}:^......or  order, 

Eight   hundred  forty-five   and  no/lOO  Dollars 

value  received,  and  charge  to  the  account  of 


rj^Q  Geo.    W.    Kendrick, 

Junction  City,  Kan. 


A.    R    TAYLOR 


When  is  this  draft  due  ?  In  what  respects  does  it  differ  from  the  others  ?  What  are  the  probable  and  possi- 
ble relations  of  all  the  parties?  Make  the  Journal  entries  of  all  the  parties.  Write  the  acceptance  and  indorsement. 
Sinclair  would  make  if  he  sold  the  draft  at  a  discount  to  the  First  National  Bank  after  having  it  accepted. 


Stevenson's  introductory  bookkeepinq.  51 


BANK   DRAFTS. 


First  National  Bank.        jv^o.  213074 

4  Emporia,  Kan., '^.^.^.®. ..i.^. 189 .'^.-.. 

Pay  to  the  order  of 1: ^...'. Stevenson $..1:.9.^.. 

^.^1....^:^^....R9/19.^.. Dollars. 

2^...Zi£S.^...Nat:i...Bank, ^^    ^^    ^^^^^ 

New  York   City,    N.    Y.  cashier. 


Merchants  owing  persons  located  in  places  where  there  is  no  one  owing  them  use  bank  drafts 
like  the  foregoing,  which  are  accepted  as  cash  by  any  bank,  although  sometimes  a  charge  of  a  fraction 
of  1  per  cent,  is  made,  called  exchange.  W.  O.  Stevenson,  of  Emporia,  owed  Franklin  &  Co.,  of 
Chicago.  He  goes  into  the  Emporia  bank  and  buys  the  above  draft.  He  then  indorses  it  in  full, 
favor  of  Franklin  &  Co.,  and  sends  it  to  them.  The  banks  keep  money  on  deposit  in  some  large 
city,  against  which  they  draw  their  drafts.  The  settlements  of  the  banks  with  each  other  is  made 
through  the  medium  of  the  clearing-house.  The  clearing-house  in  a  small  town  consists  of  repre- 
sentatives of  the  various  banks,  who  meet  to  exchange  each  others'  checks  which  they  have  cashed, 
and  to.  adjust  differences  by  paying  the  amount  due.  The  clearing-house  in  the  larger  cities  has 
become  almost  a  national  institution,  adjusting  the  differences  and  making  settlements  among  the 
banks,  throughout  the  whole  country.  , 


A   FORB-rCN    BILL   OF   EXCHANGE. 


•^'^- 5-^??-^-  • Emporia,  Kan., ?.H^.e. J:l ,  189.1... 

Exchange  for 
£  ....^.Z.".?:.?."  :^.9  ^^  demand,  duplicate  being  unpaid. 

Fay  for  this  Bill  of  Exchange,  to  the  order  of 

John  Jones, 

Ninety-seven  Pounds,  Fifteen  Shillings,  Ten  Pence. 

rj^Q   Parr's  Bank,  Limited, 

EMPORIA  NAT I ONAL  BANK , 
London,  

J.  M.  Steele, 
England.  .  - ;:  - 

" ~...  Cashier, 


This  is  a  draft  on  a  foreign  country.     What  caused  it  to  be  drawn?    You,  or  some  one  else, 
desired  to  send  the  amount  named  to  John  Jones,  in  England,  and  bought  the  draft  of  the  banker. 


52 


STEVENSON  S   INTRODUCTORY    BOOKKEEPING. 


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Stevenson's  introductoky  bookkeeping, 
letter  of  credit. 


53 


The  letter  of  credit  is  a  draft  drawn  by  one  bank  on  another,  usually  in  a  different  country, 
and  which  is  honored  not  only  by  the  bank  on  which  it  is  drawn,  but  by  any  banking  institution 
having  business  relations  with  the  drawees. 

The  following  is  a  copy  of  a  letter  of  credit  bought  by  Joseph  L.  Eice,  in  New  York  city,  and 
used  by  him  in  the  various  European  cities  visited: 


CIRCULAR   LETTER  OF   CREDIT. 

No.  8212. 

ADDRESSED  TO  THE  CORRESPONDENTS 

OP 

KNAUTH,  NACHOD  &  KUHNE. 

£3QQ  J{ew  York,  August  I4,  1891. 

GE^TLEMEJ^:  We  leg  to  introduce  and  commend  to  your  kind  attention  Mr.  JOSEPH  L.  RICE,  to  whom 
you  will  please  furnish  such  funds  as  he  may  require,  up  to  the  aggregate  amount  of  Three  Hundred 
Pounds  Sterling  against  his  Sight-drafts  on  the  Alliance  Bank,  Limited,  London,  each  draft  to  be  plainly 
marked  as  "  Drawn  on  K.  JV.  ^K.'s  L.  Credit  JVo.  8212." 

We  engage  that  such  drafts  shall  meet  with  due  honor  in  London,  if  negotiated  within  twelve  (12) 
months  from  this  date,  and  request  you  to  buy  them  at  the  same  rate  at  which  you  purchase  demand  drafts 
on  London,  deducting  your  charges,  if  any. 

The  amount  of  each  draft  must  be  inscribed  on  the  back  of  this  letter,  and  to  this  we  wish  to  call  your 
espeeial  attention;  the  letter  itself  should  be  attached  to  the  last  draft  drawn. 

Please  see  to  it  that  the  drafts  be  signed  in  your  presence  and  carefully  compare  the  signature  with  the 

the  one  below. 

We  are,  gentlem,en, 

Your  obedient  servants. 

Holder's  Signature:  KKA UTH,  XACEOB  ^  KUHME. 

JOSEPH  L.  RICE.  P'^  QPPE^N-HEIMER. 


The  hacJc  of  the  letter  appears  as  follows: 


Bankers  will  please  inscribe  payments  in  their  order  on  these  pages. 


Date 
when  paid. 


1891. 
Aug.  24 
Sept.  2 
Sept.  4 
Sept.  19 
Sept.  23 
Sept.  29 
Oct.  6 
Oct.  7 
Oct.  14 
Oct.  19 
Oct.    29 


By  whom  paid. 


Alliance  Bank, 
Falcke  &  Co., 
The  same, 
Bank  Populaire, 
Zurcher  Bankverein, 
Dutschka  &  Co., 
L.  Loenwhurg, 

do. 
Paye  Par  Credit  Lyonnais, 
Alliance  Bank, 
The  Capital  &  Counties  Bank,  Limited, 


Name 
of  town. 


London. 

Lucerne. 

It 

Inter  laken. 
Zurich. 
Vienna. 
Berne. 

do. 
Paris. 
London. 
Ventnor. 


Am,ount  paid, 
expressed  in  words. 


Five  Pounds. 
Five  Pounds. 
Ten  Pounds. 
Seven  Pounds. 
Ten  Pounds  Sterling. 
Six  Pounds. 
Eight  Pounds. 
Eight  Pounds. 
Fifteen  Pounds. 
Twenty-five  Pounds. 
Twenty-one  Pounds. 


Am,ount 

in 
figures. 


£5 

£5 

£10 

£7 

£10 

£6 

£8 

£8 

£15 

£25 

£21 


£120 


54 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


AN   ORDER   FOB   GOODS. 


626  roo 


Chanute,  Kan., 9.?.^..": \ 199.9... 


Geo.    W.    Newman  &  Co.: 

Please  deliver  to .1.- ?.* ?..'.?.?.?:":.°^ goods  to  the  value  of 

Six   hundred   twenty-six   and   37/^100  Dollars 

and  charge  to  the  account  of 

^^38  W.    E.    KOCH. 


An  order  differs  from  a  draft  in  tliat  it  is  for  goods  of  some  kind,  while  a  draft  is  for  money. 


DUE-BILL    FOB    GOODS. 

Bue         Pa^l    J.°^®..S 

Holton,  Kan., ^F.li}.....^.9. 189..^..... 

Forty-five 

Dollars' 

worth  of  goods  from  our  store. 

^45.00 

PARKER  &   SMITH. 

A  RECEIPT  FOR  MONEY  RECEIVED  ON  ACCOUNT. 


35.00 


Independence,  Kan., AP.^i?: ? 189 . 

John  Smith 


Received  from 

.?.':'.:':.^*yr£.il?...-5'll..E?/i°° DoHars, 

""»""""'*■  -  S.    M.    NEES.         ■ 


*Vo. 


97 


8/19 
I, / , 


8 


Emporia, / ~.......  189 

W.    H.    Keller 


Rec'd  of 

.    24 


JVo. 


for  rent  of  House 

1017   Mechanics 


street,  Emporia,  Kan.,  m>onth  end- 

.  ^  Sept.    6     ,„„  8 

mg .r:. ,  189 - 


RECEIPT    FOB    RENT. 


JVo.. 


97 


Aue: .       19 

Emporia,  Kan., Ei ^.....189  . 

W.    H.    Keller 


the  sum,  of. 


Received  of.. 

Twenty-four  and  no/lOO 


Dollars, 


in  full  for. month's rent  for 

^       1017   Mechanics  .,    ,  ^       ■    r^ 

Jyo _ Street,  Emporia,  Kan., 

for  the  month  ending z^. .* .,  189. 


'  By  the  acceptance  of  this  receipt,  you  are  also  hereby  notified  that  when  rent  is 
not  paid  at  our  oflSce,  promptly  for  each  and  every  month,  you  must  vacate  the  prem- 
ises vyithin  five  days  after  such  rent  becomes  due.  This  shall  be  a  notice  to  vacate 
unless  such  condition  is  complied  with,  waiving  all  rights  of  further  notice. 

P.    A.    STEVENSON. 


Stevenson's  intkoductory  bookkeeping.  55 


QUESTIONS. 


1.  What  is  a  bank  check  ? 

2.  What  are  the  parties  to  a  check  called  ? 

3  Under  what  circumstances  may  a  person  draw  a  check  on  a  bank  where  he  has  no  money  on  deposit?  Ans. 
(a)  When  an  agreement  is  made  with  the  bank,  which  no  banker  ought  to  make,  however,  unless  the  indi- 
vidual gives  his  note  and  receives  credit,  which  is  virtually  making  a  deposit.  (6)  When  the  check  is  drawn 
and  the  drawer  goes  at  once  and  makes  a  deposit  to  meet  the  check,  (c)  When  the  drawer  is  a  rascal  and 
desires  to  go  to  the  penitentiary  for  securing  money  under  false  pretenses. 

4.  What  is  a  draft? 

5.  What  are  the  probable  relations  of  the  parties  ? 

6.  What  are  the  possible  relations  existing  between  the  drawer  and  drawee? 

7.  What  are  the  possible  relations  existing  between  the  drawer  and  payee? 

8.  How  many  kinds  of  time  drafts  ? 

9.  When  are  sight-drafts  paid  ? 

10.  When  are  time  drafts  paid  ? 

11.  Why  are  drafts  accepted  ? 

12.  When  is  it  necessary  to  date  the  acceptance  f 

13.  Describe  a  bank  draft. 

14.  Name  the  parties  to  a  promissory  note. 

15.  Explain  the  various  kinds  of  indorsements. 

16.  What  is  an  order  ? 

17.  What  is  a  circular  letter  of  credit  f 

18.  What  is  a  receipt  ? 

19.  What  is  a  due-bill? 

20.  Write  four  different  kinds  of  notes,  and  explain  differences. 

21.  What  are  foreign  bills  of  exchange  ?    Name  their  advantages. 
22    How  many  different  ways  of  sending  $25  to  Boston  ? 

23'  Jan  3  1897,  you  drew  a  draft  for  $800  at  10  days'  sight  on  your  debtor,  E.  L.  Payne,  Hutchinson,  favor  of 
John  Madden,  and  sent  same  to  Madden,  less  13  days'  discount,  to  apply  on  the  account  of  your  creditor, 
Chas  S  Davis,  (a)  What  was  your  Journal  entry?  Ans.  Chas.  S.Davis,  Discount,  To  E.  L.  Payne. 
(6)  What  were  Payne's  entries?  A^is.  First,  Student,  To  Bills  Payable:  second.  Bills  Payable,  To  Cash. 
c  What  were  Madden's  Journal  entries?  Ans.  First,  Bills  Eeceivable,  To  Discount,  Chas.  S.  Davis;  second, 
Cash,  To  Bills  Receivable,    {d)  What  is  Davis's  entry  ^    Ans.  Madden,  to  Student,  the  amount  of  draft  less 

discount. 
24    Write  the  draft  described  in  23,  showing  acceptance  and  indorsement. 

25'.   Have  you  a  collection  of  real  business  forms  ?    If  not,  pluck  up  courage  and  make  a  collection. 
26.   To  whom  is  an  Acceptance  a  Bills  Payable? 
27    To  whom  is  it  a  Bills  Receivable  ? 
28.  To  what  party  to  a  draft  is  it  neither  a  Bills  Payable  nor  a  Bills  Reseivable? 


56  Stevenson's  introductory  bookkeeping. 


EXEECISES  IN  JOUENALTZING  NEGOTIABLE  PAPEE. 


1.  A.  K.  Taylor  gave  Frank  Dyer,  on  account,  his  draft  at  sight  on  L.  E.  Wolfe,  who  owes  Tay- 

lor, for  $400. 

2.  W.  M.  Davidson  gave  L.  A.  Lowther,  in  payment  for  merchandise,  his  draft  at   30  days' 

sight  on  E.  E.  Heath,  to  whom  he  has  sold  real  estate,  for  $1,500. 

3.  John  MacDonald  drew  a  draft  at  60  days  after  date  on  J.  N.  Engle,  whose  matured  note 

he  holds,  in  favor  of  B.  F.  Eyer,  whom  he  owes,  for  $600. 

4.  J.  S.  Parks  received  as  a  present  from  Frank  Nelson  a  sight-draft  drawn  on  Wm.  Stryker  for 

$750. 

5.  A.  B.  Stroup  drew  a  draft  at  sight,  favor  of  himself,  on  W.  0.  Lansdon,  who  owes  him  on  ac- 

count, and  deposited  same  in  bank,  for  $900. 

6.  Henry  M.  Thomas  drew  a  draft  in  favor  of  himself  at  90  days  after  date  on  Geo.  H.  Rising,  his 

debtor,  which  Rising  accepted  and  returned,  for  $560. 

7.  E.  F.  Stanley  received  from  L.  G.  Taylor,  on  account,  a  draft  at  60  days'  sight,  drawn  in  L.  G. 

Taylor's  favor  by  A.  S.  Olin,  and  accepted  by  M.  L.  Field,  for  $340. 

8.  M.  A.  Bailey  received  from  T.  M,  Iden,  on  account,  his  note  at  30  days,  with  interest  at  10  per 

cent.,  and  indorsed  and  sent  same  in  payment  of  goods  at  its  face  value,  $1000,  to  F.  B.  Ab- 
bott &  Co. 

9.  Newman  &  Co.  cashed  J.  N.  Wilkinson's  sight-draft  on  J.  J.  Edwards  for  $89,  favor  of  J.  J. 

Baker. 

10.  John  Madden  gave  to  F.  S.  Larabee,  on  account,  a  note  at  30  days,  made  in  his  favor,  for  $750, 

and  a  draft  at  10  days'  sight  in  favor  of  Madden,  drawn  by  A.  H.  Turner. 

11.  Henry  Amyx  gave  his  draft  at  sight  on  Luke  Torrance  for  $300,  to  McConkey  &  Shelton,  for 

their  note  at  10  days,  with  interest,  for  the  same  amount. 

12.  J.  C.  Wright  exchanged  notes  with  Arthur  Bailey  for  mutual  accommodation,  each  note  made 

at  60  days,  for  $340. 

13.  D.  A.  Ellsworth  received  of  E.  L.  Payne,  to  apply  on  his  note  of  the  5th  inst.,  G.  W.  Ken- 

drick's  acceptance  of  W.  O.  Stevenson's  draft,  Payne's  favor,  accepted  the  10th  inst.,  at  30 
days,  and  indorsed  by  Payne,  for  $2,000. 

14.  On  September  1, 1898,  you  discounted,  at  the  Citizens  Bank,  S.  H.  Dodge's  note  of  $500,  drawn 

July  1,  1898,  receiving  cash  for  one-half  the  proceeds  and  credit  for  the  balance. 

15.  J.  K.  Hudson  received  of  Theodore  Roosevelt,  to  apply  on  the  account  of  Frederick  Funston, 

a  New  York  bank  draft  for  $500 ;  an  order  for  goods  to  the  amount  of  $75  on  Crosby  &  Co., 
Topeka ;  a  receipt  for  one  year's  rent  in  Com  building,  Topeka,  $500 ;  a  circular  letter  of  credit 
drawn  by  Vermyle  &  Co.,  bankers.  New  York,  addressed  to  their  European  and  Asiatic  cor- 
respondents, for  <£800 ;  a  post-office  money-order  for  $5 ;  a  sight-draft  on  F.  H.  Snow  for 
$100 ;  a  promissory  note  for  $175  at  8  months,  with  interest  at  10  per  cent.,  by  C.  F.  Scott ;  a 
draft  at  30  days  from  date,  drawn  by  Charles  Curtis  on  John  Brown,  favor  of  M.  A.  Bailey, 
for  $216,  and  properly  endorsed. 


SET  B\ 

SEED  BUSINESS. 


APRIL. 


Objects. — (1)  Use  of  Journal-Day  Boak,  sometimes  called  Itemized  Journal.  (2)  Journal- 
izing. (3)  Opening  entry  for  a  partnership.  (4)  Closing  of  Loss  and  Gain  account  when  there 
are  two  partners. 


Instructions. — (1)  Observe  carefully  the  arrangement  of  the  model  for  Journal-Day  Book. 
(2)  Review  the  eight  principles  for  determining  debit  and  credit.  Knowing  them  and  knowing 
how  to  develop  them,  you  will  be  able  not  only  to  journalize  any  transaction  but  be  able  to  inter- 
pret the  results  shown  by  any  account.  (3)  As  this  set  is  largely  theoretical,  you  may  keep  an  ac- 
count with  Mdse.,  instead  of  separate  accounts  with  Timothy,  Seed-corn,  Millet,  Wheat,  Alfalfa, 
etc.,  which  would  be  advisable  in  a  practical  business.  (4)  It  is  better  to  keep  an  account  with 
each  partner,  as  each  is  owed  by  the  business  the  amount  he  puts  into  it,  plus  the  gain  or  minus 
the  loss  for  the  time. 


"Few  things  are  impossibk  to  skill  and  industry." 
"Dispatch  is  the  soul  of  business,  method  the  soul  of  dispatch.' 


58  Stevenson's  intboductosy  bookkeeping. 


STEPS  TAKEN  IN  WRITINa  SET  B\ 


1.  Write  Journal-Day  Book.  As  there  are  two  proprietors,  debit  the  resources  and  credit 
the  liabilities  of  each,  and  debit  or  credit  the  proprietor  with  the  difference,  which  is  his  net  in- 
vestment. Proprietors  investing  equal  amounts  generally  share  equally  in  the  losses  or  gains, 
although  circumstances  or  agreements  may  make  the  proportionate  share  to  be  anything. 

2.  Post.  Open  an  account  with  each  of  the  proprieters.  A  Stock  account,  which  combines 
the  investments  of  both,  is  sometimes  used. 

3.  Take  Lead-Pencil  Footings  op  all  the  Accounts. 

4.  Take  Trial  Balance  of  Differences. 

5.  Close  Accounts  Showing  Losses  or  Gains. 

6.  Close  Loss  and  Gain  Account,  entering  the  net  loss  or  net  gain  in  two  equal  amounts, 
with  the  explanation,  "Student's  net  gain"  or  "Student's  net  loss,"  and  "Moses'  net  gain"  or 
"Moses'  net  loss." 

7.  Fill  out  Loss  and  Gain  Columns  in  Financial  Statement. 

8.  Close  Proprietors'  Accounts. 

9.  Fill  out  Resource  and  Liability  Columns  in  Balance  Sheet. 

10.  Close  Accounts  Remaining  Open. 

11.  Take  Last  Trial  Balance,  by  comparing  the  faces  of  the  accounts  in  Ledger  with  the 
amounts  in  Statement  of  Resources  and  Liabilities. 


PAETNERSHIP  FORMATIONS. 


A  partnership  is  a  combination  of  the  interests  of  two  or  more  competent  persons,  who  place 
their  money,  effects,  services  and  skill,  or  some  or  all  of  them,  in  some  business  undertaking,  and 
agree  to  divide  or  share  the  profits  or  losses  in  certain  proportions. 

The  formation  of  the  partnership  may  be: 

1.  Equal  investments,  and  share  equally  in  losses  and  gains,  and  worth  equal  amounts. 

2.  Equal  investments,  but  because  one  partner  does  all  the  work,  the  gains  shared  unequally. 

3.  One  partner  puts  his  experience  against  the  other's  capital,  and  they  share  equally  in  the  gains 

or  losses,  but  have  unequal  worths. 

4.  A  clerk  with  no  capital  is  given  a  percentage  of  the  profits,  or  even  a  share  of  the  assets  of  the 

whole  business,  that  he  may  be  retained. 

5.  The  partners  make  unequal  investments,  receive  salaries  which  may  vary  as  to  amounts,  and 

the  net  profits  of  the  firm  put  into  additional  stock. 

6.  Partners  fix  a  minimum  amount  which  each  must  have  invested  all  the  time,  and  are  paid  inter- 

est on  all  above  that  amount  which  they  may  invest. 

7.  Partners  charged  a  certain  per  cent,  on  all  withdrawals  of  capital,  an4  paid  a  per  cent,  on  all 

investments,  and  losses  and  gains  shared  proportionately. 

8.  Unequal  investments,  and  losses  and  gains  shared  equally  —  the  partner  investing  the  lesser 

amount  paying  interest  to  the  partner  having  the  greater  amount,  on  one-half  the  difference 
between  their  investments. 


STEVENSON  S    INTRODUCTORY    BOOKKEEPINQ. 


59 


JOUENAL-DAY  BOOK. 

(Place) State,  Apr.  1,  189. 


(Your  name)  and  R.  L.  Moses  began  a  seed  business  in  partnership, 
with  equal  investments,  and  with  the  agreement  that  losses  and  gains 
are  to  be  shared  equally. 


On  deposit,  First  National, 

Owes  on  account, 

Investment  of  above  resources, 

On  hand. 

Owes  on  account, 

Harry  Harmon's  note  at  10  de.. 

Investment  of  above  resources. 

Rent  for  April, 

Office  furniture  and  books. 

Checks  1  and  2, 

Bought  of  Prior  &  Co.,  Dayton: 
150  bu.  timothy,      $1,00, 
200   "    millet,  1.10, 

500  *'    seed-corn,       .50, 

Note  at  60  ds., 

Balance, 

Note  at  21  ds.  with  interest. 
On  account. 

Sold  John  Taylor,  Belton : 
40  bu.  timothy,      $1.50, 
160   "    yellow  corn,    .50, 
15   "    millet,  1.60, 

Note  at  30  ds.. 

Balance, 


Cash, 
James  Doty, 

(Your  name), 

Cash, 

M.  D.  Wentworth, 
Bills  Receivable, 
R.  L.  Moses, 

Expense, 
Expense, 
Cash, 


150 
220 
250 


60 
80 
24 


Bought  of  W.  Virgil,  St.  Louis: 

40  bu.  wheat,           $0.80, 

32.00 

60   "    red  clover,      6.00, 

360.00 

35   "    alfalfa,            6.50, 

227.50 

Mdse., 

Check  No.  3, 

Cash, 

Note  at  12  ds., 

Bills  Payable, 

Mdse., 

Bills  Payable, 
Cash, 

Bills  Receivable, 
Jas.  Doty, 


Mdse., 
Bills  Receivable, 
Cash, 


2620 
580 

1100 

600 

1500 

35 
30 


620 


180 


100 
64 


619 


50 


8048 

8048 


3200 


3200 


65 


50 


100 
520 

180 


164 


119 

500 


50 


8048 

8048 


50 


60  Stevenson's  intkoductory  bookkeeping. 


MEMORANDA.— SET  D 


April. 

1.  Student  begins  a  seed  business  in  partnership  with  R.  L.  Moses,  investing  equal  amounts, 

and  sharing  the  losses  or  gains  equally.     The  firm  name  to  be &  Moses.     You  invest 

cash  in  First  National  Bank,  $2,620;  James  Doty,  Garfield,  owes  you  on  account 
R.  L.  Moses  invests  cash,  $1,100;  M.  D.  Wentworth,  Rosedale,  owes  him  on  account 
Harry  Harmon's  note  for  $1,500,  at  10  days,  with  interest. 

2.  Pay  Wm.  Gray  rent  for  April,  by  check,  $35.     Buy  office  furniture  and  books  of  North  &  Co., 

814  Market  St.,  and  pay  for  same  by  check,  $30.  Buy  from  Prior;  &  Co.,  Dayton,  150  bu. 
timothy  seed  at  $1,  $150;  200  bu.  millet  at  $1.10,  $220;  500  bu.  seed  corn  at  50  cts.,  $250. 
Total,  $620.     Give  your  note  of  $100  for  60  days  in  payment,  and  cash  for  the  balance. 

3.  Receive  James  Doty's  note  for  $180  with  interest  at  21  days,  to  apply  on  his  account. 

4.  Sell  John  Taylor,  Belton:  40  bu.  timothy  seed  at  $1.50,  $60;  160  bu.  yellow  com  at  60  cts., 

$80;  15  bu.  millet  at  $1.60,  $24.  Total,  $164.  Receive  in  payment  his  note  at  30  days  $100; 
cash  for  the  balance. 
8.  Buy  from  W.  Virgil,  St.  Louis:  40  bu.  wheat  at  80  cts.,  $32;  60  bu.  red  clover  seed  at  $6,  $360; 
35  bu.  alfalfa  clover  seed  at  $6.50,  $227.50.  Total,  $619.50.  In  payment,  give  a  check  for 
$119.50  and  your  note  at  12  days  for  the  balance. 
13.  Receive  cash  from  Harry  Harmon  for  his  note  of  the  1st,  and  interest.  Face  of  note, 
$1,500;  interest,  13  days,  $3.25. 

15.  Pay  proceeds  of  your  note  of  the  2d,  favor  Prior  &  Co.,  by  check.     Face  of  note,  $100;  discount, 

83  cts.;  proceeds,  $99.17. 

16.  Receive  from  M.  D.  Wentworth,  to  apply  on  account,  cash,  $200;  his  note  for  $300  at  30  days, 

with  interest. 

17.  Sell  J.  B.  Lewis,  Larson:  25  bu.  wheat  at  $1.25,  $31.25;  12  bu.  red  clover  seed  at  $7,  $84;  150 

bu.  corn  at  60  cts.,  $90;  five  bu.  millet  at  $1.60,  $8.     Total,  $213.25.     In  payment,  receive  his 
note  for  $150  at  15  days,  with  interest;  balance  on  account. 
19.   Discount  John  Taylor's  note  of  the  4th,  and  receive  the  proceeds  in  cash.     Face  of  the  note, 
$100;  discount,  30  cts.;  proceeds,  $99.70. 

201   Sell  James  Mann,  317  Walnut  St.:  15  bu.  red  clover  seed  at  $7,  $105;  35  bu.  millet  at  $1.40, 
$49.     Total,  $154.     Receive  in  payment  his  check  on  Citizens  National  Bank. 

22.  Buy  from  Prior  &  Co.:   400  bu.  white  oats  at  35  cts.,  $140;   440  bu.  corn  at  50  cts.,  $220. 

Total,  $360.     For  which  you  give  your  note  due  in  15  days, 

23.  Sell  John  Bell,  917  Delaware  St.:   5  bu.  alfalfa  clover  seed  at  $8,  $40;  75  bu.  oats  at  60  cts., 

$45;  100  bu.  com  at  60  cts.,  $60.     Total,  $145.     Receive  his  note  due  in  30  days. 

24.  Pay  proceeds  of  your  note  of  the  22d,  favor  Prior  &  Co.,  by  check.     Face  of  note,  $360;  dis- 

count, 16  days,  96  cts. 

26.  Sell  I.  E.  George  on  account:   70  bu.  millet  at  $1.60,  $112;  12  bu.  alfalfa  clover  seed,  at  $8, 

$96;  25  bu.  timothy  seed  at  $1.25,  $31.25,     Total,  $239.25. 

27.  Buy  from  Allen  &  Jones,  St.  Louis,  on  account:   75  bu.  timothy  seed  at  $1,  $75.     Receive  cash 

of  James  Doty  for  his  note  of  the  3d,  and  interest.  Face  of  note,  $180;  interest,  24  days, 
72  cts. 


Stevenson's  inteoductoky  bookkeeping.  61 

^8.   Receive  from  James  Doty,  to  balance  his  account,  his  note  at  12  days,  $150;  cash,  $250. 

29.  Buy  from  George  Monroe,  Bonner:  100  bu.  wheat  at  $1,  $100-,  15  bu.  alfalfa  clover  seed 
at  $6.50,  $97.50.  Total,  $197.50.  Give  in  payment  James  Doty's  note  of  the  28th,  less  discount; 
balance  by  check.     Face  of  note,  $150;  discount,  14  days,  35  cts.;  amount  of  check,  $47.85. 

30.  Sell  office  furniture  for  $25.     Pay  James  Bell's  salary  for  April  in  cash, 

Inventoey.  — 160  bu.  timothy  seed @  $1.00. 

75  bu.  millet @  $1.10. 

530  bu.  corn @  50  cts. 

15  bu.  wheat @  80  cts. 

33  bu.  red  clover  seed @  $6.00. 

18  bu.  alfalfa  clover  seed @  $6.50. 

325  bu.  oats @  35  cts. 


QUESTIONS  ON  SET  D^ 


1.  What  are  the  advantages  of  a  Journal-Day  Book? 

2.  Explain  the  opening  entry  when  there  are  two  or  more  proprietors. 

3.  What  account  is  sometimes  used  instead  of  the  various  proprietors'  accounts?     What  is  the  objection  to  its 

use? 

4.  Why  enter  the  net  loss  or  net  gain  in  two  equal  amounts  on  the  face  of  Loss  <fe  Gain  account  ? 

5.  Why  enter  the  net  loss  or  net  gain  in  two  amounts  on  the  Balance  Sheet  ? 

6.  Why  enter  the  worths  of  the  proprietors  in  two  amounts  on  the  Balance  Sheet  ? 

7.  How  often  is  it  customary  to  find  the  worths  of  the  proprietors  ? 

8.  How  often  may  the  worth  of  the  proprietors  be  found  ? 

9.  When  is  a  firm  insolvent  ?   ( See  business  terms  defined,  pp.  142-148. ) 

10.  A.  and   B.  form  a  partnership.    A.'s  liabilities  are  $20  greater  than  his  resources.     B.'s  liabilities  are  $10 

greater  than  his  resources.  Their  interest  is  to  be  in  proportion  to  their  investment.  They  gain  $60.  How 
much  of  it  should  each  one  get  ?  Ans.  B.  is  worth  twice  as  much  as  A.  Hence  B.'s  interest  is  %  and  A.'s 
y^.    A.  gets  $20,  and  B.  $40. 

11.  A.,  B.  and  C.  form  a  partnership.    A.'s  liabilities  are  $200  greater  than  his  resources.    B.'s  liabilities  exceed 

his  resources,  $700.  C.'s  resources  are  $100  less  than  his  liabilities.  They  invest  all  their  resources  and  lia- 
bilities, with  the  agreement  that  the  interest  of  each  in  the  business  shall  be  in  proportion  to  the  investment. 
Give  the  proportionate  interest  of  each.  What  must  the  firm  gain  to  make  it  solvent  ?  How  much  must  be 
gained  to  make  all  of  the  partners  solvent  ?    Ans.   $8,050.     Show  why. 


62  Stevenson's  introductory  bookkeeping. 


SET  B\ 


MEMOEANDA. 

To  be  written  like  Set  D^. 


April. 
1.    Student  has  formed  a  partnership  with  J.  K.  Bryce  and  E.  B.  Mitchell  to  carry  on  a  seed  busi- 
ness, each  partner  to  share  the  gains  or  losses  in  proportion  to  his  investment. 
Student's  resources  are :    Cash  on  deposit  in  First  National  Bank,  $7,500 ;  cash  on  hand, 

$2,500;  J.  H.  May's  note,  dated  March  15,  at  30  ds.,  $500;  M.  A.  Wilkes  owes  him  on  acct., 

$500. 
Student's  liabilities  are:  Note  favor  W.  Dodd  at  60  days.,  dated  February  7,  $1,500;  owes 

John  Wade  on  account,  $500. 
Bryce's  resources  are:   Cash  on  hand,  $15,000. 
Mitchell's  resources  are:   Store  and  lot,  valued  at  $4,000;  furniture  and  fixtures,  $500;  J.  L. 

Clark  owes  him  on  account,  $1,200;  R.  Munson  owes  on  account,  $300. 
Mitchell's  liabilities  are:   Note  of  10  ds.  favor  Beach  &  Son,  dated  March  21,  $1,000. 

I.  Buy  from  Jay  &  Gregg,  Springfield,  300  bu.  timothy  seed  at  90  cts.;  120  bu.  millet  at  $1 ; 

1,000  bu.  white  com  at  40  cts.;  350  bu,  yellow  seed-corn  at  35  cts.     Pay  cash. 

3.  Pay  Beach  &  Son's  note  of  the  2l8t  ult.,  with  interest  at  6%. 

4.  Sell  Gray  &  Grove  on  account:   200  bu.  timothy  seed  at  $1.10;  500  bu.  white  seed-corn  at  50 

cts.;  40  bu.  millet  at  $1.06.  Deposit  $10,000  in  bank.  Buy  from  W.  H.  Sherman,  Ottawa: 
300  bu.  timothy  at  85  cts.;  150  bu.  yellow  corn  at  35  cts.;  100  bu.  millet  at  $1.00;  1,500  bu. 
white  corn  at  40  cts.;  700  bu.  wheat  at  80  cts.  Give  in  payment  sight-draft  on  J.  L.  Clark 
for  $1,200 ;  your  check  for  $67.50 ;  balance  on  acct. 

5.  Sell  D.  E.  Coming  &  Co.,  Westport:   1,000  bu.  white  seed  com  at  50  cts.;  150  bu.  timothy  at 

$1.20.  They  give  in  payment  a  note  of  $600  against  G.  W.  Newman  &  Co.,  due  to-day,  with 
interest  at  6  %  per  annum  for  93  days;  they  pay  the  interest  and  $400  of  the  note,  issuing  a 
new  note  at  15  ds.  for  the  balance.     Corning  &  Co.  pay  cash  for  the  balance  of  bill. 

8.  R.  Munson  pays  cash  on  account,  $100.  Gray  &  Grove,  who  owe  us  $512  on  acct.,  have  com- 
promised with  their  creditors  at  65  cts.  on  the  dollar,  and  pay  us  that  proportion  of  their 
acct.  in  cash. 

10.  Jas.  Overton  buys  for  cash  our  entire  stock  of  millet  at  $1.20  per  bu.,  and  200  bu.  wheat  at 
$1.00. 

II.  Buy  from  W.  C.  Mick  Kansas  City:   50  bu.  clover  seed  at  $5.00;  200  bu.  yellow  seed-corn  at 

35  cts.;  150  bu.  rye  at  50  cts.;  100  bu.  choice  white  oats  at  25  cts.;  give  in  payment  sight- 
draft  on  M.  A.  Wilkes.  We  pay  the  interest  on  W.  Dodd's  note,  due  to-day,  paying  also  one- 
half  the  note  in  cash,  and  giving  a  new  note  at  30  ds.  for  the  balance. 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING, 


63 


13.  Sell  J.  M.  Johnson,  Topeka:  200  bu.  wheat  at  $1.05;  600  bu.  yellow  com  at  50  cts.;  800  bu. 
bu.  white  corn  at  50  cts.;  100  bu.  timothy  seed  at  $1.10;  25  bu.  clover  at  $8.00;  50  bu.  rye  at 
60  cts.  He  gives  in  payment  sight-draft  on  John  Wade  for  $500;  draft  at  10  days'  sight  on 
Neil  &  Co.,  Baxter  Springs,  for  $300;  a  note  at  60  ds.  for  $100;  balance  on  acot. 

17.  Rec'd  from  J.  H.  Mays,  interest  on  his  note  of  March  15th  and  $300  cash.  He  makes  a  new 
note  at  45  ds.  for  the  balance. 

21.  Sell  J.  H.  Reynolds,  Ashland:  25  bu.  clover  seed  at  $8.00;  150  bu.  timothy  seed  at  $1.10;  300 
bu.  wheat  at  $1.10.  Receive  in  payment,  cash,  $500;  balance  on  acct.  Neil  &  Co.  accept 
draft  of  April  13th.  John  Wade's  account  against  us  is  settled  by  presenting  J.  M.  Johnson's 
draft  on  him  in  favor  of  ourselves.     Discount  at  6%  all  notes  outstanding. 

24.  Find  worths  of  the  proprietors;  inventories  at  cost.     Close  books  and  make  Balance  Sheet. 

25.  Student  and  Mitchell  decide  to  withdraw  from  the  business,  and  it  is  agreed  with  Bryce  that 

they  may  do  so,  taking  their  worths  in  cash,  but  the  grain  on  hand,  office  fixtures  and  real 
estate  are  to  be  taken  by  Bryce  at  four-fifths  their  cost.  Make  the  Journal  entry  for  the 
withdrawal  of  Student  and  Mitchell. 

As  this  set  is  somewhat  difficult,  the  Journal  and  Ledger  are  shown  on  this  and  the  following 
page. 

w^. 


April  1 

Cash, 

10,000 

V 

Bills  Receivable, 

500 

M.  A.  Wilkes, 

500 

Bills  Payable, 

1,500 

John  Wade, 

500 

Student, 

9,doo 

Cash, 

15,000 

J.  R.  Brice, 

15,000 

Real  Estate, 

4,000 

Furniture  and  Fixtures, 

500 

J.  L.  Clark, 

1,200 

R.  Munson, 

300 

Bills  Payable, 

1,000 

E.  B.  Mitchell, 

5,000 

Merchandise, 

912  50 

Cash, 

912  50 

Bills  Payable, 

—  3  — 

1,000 

Interest, 

2  17 

Cash, 

1,002  17 _ 

Gray  &  Grove, 

_4_ 

512 

Merchandise, 

512 

Merchandise, 

—  4  — 

1,567  50 

J.  L.  Clark, 

1,200 

Cash, 

67  50 

W.  H.  Sherman, 

300 

Bills  Receivable, 

—  D  — 

200 

Cash, 

480 

Merchandise, 

680 

Cash, 

—  8  — 

loo 

R.  Munson, 

100 

Cash, 

—  8  — 

S32  80 

Gray  &  Grove, 

332  80 

—  10 


Cash, 


Merchandise, 


Merchandise, 

M.  A.  Wilkes, 

Bills  Payable, 
Interest, 

Cash, 

Bills  Payable, 

Cash, 

Bills  Receivable, 

J.  M.  Johnson, 

Merchandise, 

Cash, 

Bills  Receivable, 

Bills  Receivable, 

Interest, 

Cash, 

J.  H.  Reynolds, 

Merchandise, 

John  Wade, 
Cash, 

Bills  Payable, 
Discount, 
Cash, 

Student, 
E.  B.  Mitchell, 
Cash, 


—  11  — 


416 


420 


416 


420 


-Il- 


ls— 


—  17  — 


—  21 


—  21  — 


—  21 


25 


-i 


500 

700 

50 


302 
200 


1,250 


500 
195 


500 


750 


500 
2  75 


^95 


500 


2  88 
747  12 

8,911  09 
4,950  61 

13,861  70 

57,627  47 

57,627  47 

<i 


if 


64 


STEVENSON  S    INTEODUCTOEY    BOOKKEEPING, 


Cash. 

1 

10,000 

912  50 

2 

1 

15,000 

1,002  17 

3 

5 

480 

67  50 

4 

8 

100 

765  75 

11 

8 

332  80 

500 

21 

10 

416 

747  12 

21 

13 

600 

13,861  70 

25 

17 

302  75 

21 

500 

37831     eS 

Merchandise. 


Bills  Payable. 


1,000 

1,500 

750 


1,500 

1,000 

750 


Discount. 


ti    Gain, 


S  88        2  88 


Bills  Eeceivable. 


Real  Estate. 


Furniture  and  Fixtures. 


Personal  Accounts. 

1 

1 
1 

4 
13 
21 
21 

Wilkes,                      500 
Munson,                      300 
J.  li.  Clark,            1,200 
Gray  &  Grove,           512 
J.  M.  Johnson,            50 
J.  H.  Reynolds,        195 
Jno.  Wade,                500 

500         Wade. 
1,200         J.  L.  Clark. 
300         Sherman. 
100         Munson. 
332  80    Gray  &  Grove. 
17-9  to    O.  <Sc  Q.,  Loss. 
420         WUkes. 

1 
4 

4 

8 
8 
8 
11 

33ft7 

3033 

21 


1 

500 

500 

17 

5 

200 

13 
17 

700 
200 
i«ao 

1 

Inveatory, 
Inventory, 

4,000 

i.OOO 

Inventory. 

Inventory, 
Loss. 

U 

4,000 

4,000 

24 

4,000 

S.IOO 
800 

S5 

4,000 

4.000 

2S 

3,200 

1 

500 

500 

Inventory. 

Inventory. 
Loss. 

su 

500 

500 

24    Inventory, 

600 

UOO 
100 

IS 

500 

500 

25    Inventory, 

400 

1 

4 
11 

Si 

Gain, 

Inventory, 
Inventory, 

912  50 
1,567  50 
420 

3(100 

81,3 

512 

680 

416 

1,250 

695 

3S53 
190 

4 

5 

10 
13 
21 

Inventory.              Si 

3.743 

3,743 

24 

190 

15S 
38 

Inventory.              S5 
Loss.                       S5 

190 

190 

26 

152 

Interest. 


u 


2  17 
15  75 


17  92 


2  75 
15  17    Loss. 


17  92 


Loss  AND  Gain. 


8 
24 

Gray  &  Grove, 
Interest, 

Bludenp*  net  gain, 
Mitchell's  net  gain 
Brice'a  net  gain, 

Morchandise, 
Real  estate. 
Furniture  and  fix.. 

179  20 
15  17 

1S4  37 

202  19 
in  S3 
336  99 

288 
843 

Discount.                   24 
Merchandise. 

845  88 

845  88 

25 
25 
25 

38 
800 
100 

S91  10 
161  7S 
i85  18 

Student's  net  loss. 
Mitchell's  net  loss. 
Brice's  net  loss. 

938 

938 

Brice  (Prop.) 

25    Net  loss, 

SS    Present  worth. 

485  18 
U,851  81 

15,000 
336  99 

Net  gain. 
Present  worth. 

1 
24 

15,336  99 

15.836  99 

14,851  81 

25 

Student  (Prop.) 


25 

25 

Net  loss, 
I^esent  worth, 

291  10 

8,911  09 

9,000 
202  19 

Net  gain. 
Present  worth. 

1 

24 

9.202  19 

9,202  19 

25 

8,911  09 

8,911  09 

24 

Mitchell  (Prop. 

) 

25 

25 

Net  loss. 
Present  worth. 

161  72 

i,9S0  61 

6,000 
112  33 

Net  gain. 
Present  worth. 

1 
24 

5,112  33 

5,112  33 

25 

4,950  61 

4,950  61 

26 

SET  E\ 

WHOLESALE  AND  RETAIL  CARPET  BUSINESS. 


MAY   AND   JUNE. 


Objects. —  (1)  The  keeping  of  a  Double-Entry  Cash  Book.  (2)  The  use  of  a  Bills  Receiva- 
ble Book  and  Bills  Payable  Book,  as  auxiliary  books.  (3)  The  opening  entry  for  a  partnership 
when  there  is  more  than  one  original  book  of  entry.  (4)  Posting  from  a  Cash  Book  kept  as  a 
principal  book.  (5)  The  admission  of  a  third  partner,  whose  investment  is  different  from  that  of 
the  others,  yet  whose  interest  in  the  losses  or  gains  is  to  be  the  same. 


Deliver  all  things  in  number  and  weight,  and  put  all  in  writing  that  thou  givest 
out  or  receivest  in. — Eccleaiaaticua. 

What  advantage  does  he  derive  from  a  system  of  bookkeeping  by  double  entry! 
It  is  among  the  finest  inventions  of  the  human  mind ;  every  prudent  master  of  a 
house  should  introduce  it  into  his  economy. —  ^^Wilhelm  Meister*^ — Ooethe. 


66  Stevenson's  introductory  bookkeeping. 


INSTEUCTIONS  FOE  MAY  AND  JUNE. 


1.  All  transactions  involving  a  cash  receipt  or  cash  payment  are  entered  in  the  Cash  Book, 
(See  model.)  Cash  received  is  entered  on  the  left  page  and  cash  paid  out  on  the  right  page.  On 
the  debit  side  of  the  Cash  Book  write  an  explanation  of  the  transaction  and  the  name  of  the  ac- 
count causing  the  cash  to  be  received.  This  account  must  be  credited  in  the  Ledger.  On  the 
credit  side  of  the  Cash  Book  write  an  account  of  the  transaction  and  the  name  of  the  account  for 
which  the  payment  of  cash  was  made.  Accounts  named  on  the  credit  side  of  the  Cash  Book  are 
debited  in  the  Ledger.  It  will  readily  be  seen  that  the  Cash  Book  kept  as  a  book  from  which  en- 
tries are  posted  directly  to  the  Ledger,  very  much  shortens  the  work  of  posting.  The  Cash  Book 
as  a  whole  takes  the  place  of  a  Cash  account  in  the  Ledger.  When  either  page  of  a  Cash  Book  is 
filled,  draw  a  single  line  across  the  amount  columns  on  the  larger  side,  and  draw  one  opposite  to  it 
across  the  amount  columns  on  the  other  side,  also  draw  a  line  under  the  last  item  on  the  smaller 
side;  then  foot  in  lead-pencil,  then  in  ink,  and  carry  to  top  of  following  pages. 

2.  All  transactions  not  involving  cash  are  entered  in  the  Explanatory  Journal  as  heretofore. 

3.  Have  a  time  for  everything,  and  do  everything  in  its  time;  a  place  for  everything,  and  keep 
everything  in  its  place. 

4.  Be  extremely  particular  regarding  your  writing,  figures,  and  arrangement. 

5.  Ask  your  teacher  which  price-list  to  use.  Use  the  same  number  of  selling  price-list  as  of 
buying  price-list;  i.  e.,  the  use  of  the  eighth  buying  price-list  requires  the  use  of  the  eighth  sell- 
ing price-list.  To  avoid  errors,  it  would  be  well  to  copy  the  buying  price-list  used  on  a  slip  of 
paper  and  the  selling  price-list  on  the  opposite  side.  Keep  this  before  you  in  making  your  com- 
putations. 

6.  Keep  no  account  with  the  bank. 

7.  Be  able  to  write  any  note,  check,  draft  or  receipt  spoken  of  in  the  set. 

8.  The  Cash  Book  and  Bill  Books  used  for  illustration  on  pages  68-71,  may  not  be  complete  \ 
hence  the  student  should  not  copy  them  without  reading  the  memoranda  with  care. 

9.  The  second  columns  on  both  pages  in  a  Cash  Book  are  sometimes  used  for  keeping  a  record 
of  amounts  deposited  and  withdrawn  from  the  bank;  also  sometimes  used  for  the  monthly  balances;, 
thus  keeping  the  receipts  and  payments  for  the  month  separate  from  the  amount  on  hand  at  the 
beginning.  If  it  is  desired  to  keep  a  Cash  account  in  the  Ledger,  the  monthly  cash  balances  may 
be  posted — not  the  cash  balance,  for  that  is  the  amount  of  cash  on  hand,  but  the  monthly  cash, 
balance  which  is  the  difference  between  the  receipts  and  expenditures  for  the  month. 


Stevenson's  introductory  bookkeeping.  67 


STEPS  TO  BE  TAKEN  IN  WEITINa  SET  E^ 


1.  Journalize,  entering  in  Cash  Book  or  Journal-Day  Book,  and  posting  each  day.  No  Cash 
account  is  needed  in  the  Ledger,  as  the  Cash  Book  takes  its  place. 

2.  Rule  and  Foot  Journal-Day  Book,  and  rule  and  foot  Cash  Book,  at  the  end  of  each 
month. 

3.  Take  Trial  Balance  of  Differences  at  the  end  of  each  month.  The  cash  balance  is 
carried  from  the  Cash  Book  to  the  Trial  Balance,  also  below  the  double  rulings  of  the  Cash  Book. 

4.  Enter  Inventories  and  close  Accounts  showing  losses  or  gains. 

5.  Close  Loss  &  Gain  Account,  entering  the  net  loss  or  net  gain  in  two  amounts,  prepar- 
atory to  carrying  to  the  two  proprietors'  accounts. 

6.  Close  the  Proprietors'  Accounts. 

7.  Make  a  Financial  Statement  in  the  Balance  Sheet. 

8.  See  that  Amounts  appearing  in  the  Resource  and  Liability  columns  of  Balance  Sheet  are 
the  same  as  the  faces  of  all  open  accounts.  This  will  suffice  for  a  Last  Trial  Balance,  and  the  Bal- 
ance Sheet  will  contain  six  columns  only. 

9.  At  end  of  June  close  all  Accounts. 

10.   As  a  note  is  received  or  given  out,  issued  or  redeemed,  the  proper  record  may  be  made  in 
the  Bill  Book,  which  is  usually  used  as  an  auxiliary  or  reference  book. 


68  Stevenson's  introductory  bookkeepinq. 

CASH  BOOK  (Illustrative). 


CASH 


189... 
May 


May 


1 
1 

9 
13 
15 
19 
20 


21 


Investment, 

Sold  J.  R.  Keel, 

On  Ray's  invoice, 

On  Keel's  acceptance  of  7th, 

Morris's  acceptance  of  9th, 

On  invoice  to  J.  J.  Ray, 

Ray's  acceptance  of  the  13th, 


Student, 
C.  L.  Brown, 
Mdse., 
J.  J.  Ray, 
Bills  Receivable, 
Bills  Receivable, 
J.  J.  Ray, 
Bills  Receivable, 


Balance, 


3,300 
3,000 
235 
250 
200 
200 
72 
100 


50 


7,357 


4,973 


50 


49 


STEVENSON  S   INTRODUCTOKY   BOOKKEEPING. 


69 


BOOK. 


3  On  bill  this  date, 

11  Our  acceptance  of  the  5th, 

11  On  account, 

12  Acceptance  of  the  6th, 
12  Clerk's  salary,  one  week, 

14  Acceptance  favor  W.  I.  Chaney, 

14  Drew  for  private  use, 

15  Paid  store  rent, 

20  On  Ray's  acceptance, 

21  Paid  note  of  10th,  with  interest, 
21  On  note  to  Stout  &  Co., 


Fisher  &  Co., 
Bills  Payable, 
E.  Noles, 
Bills  Payable, 
Expense, 
Bills  Payable, 
C.  L.  Brown, 
Expense, 
Discount, 
Bills  Payable. 
Interest, 
Balance, 


700 

300 

100 

720 

13 

100 

75 

30 

345 

£884 

4,973 
7,357 


43 

58 

01 

49 
50 


70 


STEVENSON  fl   INTRODUCTORY   BOOKKEEPING. 


BILL  BOOK  (Illustrative). 


BILI.S 


No. 

WTien 

ffow  Liable. 

Drawer. 

In  Whose 
Favor. 

For  WTiat 
Given. 

Where  Payable, 

Issued. 

Maker, 

Acceptor. 

1 

May 

5 

Student  & 
Brown. 

Stout  &  Co. 

E.  Randolph. 

On  acct. 

First  Nat'l  Bank. 

2 

6 

(( 

(( 

R.  A.  Nichols. 

(( 

3 

8 

Student  & 
Brown. 

Fisher  &  Co. 

Mdse. 

4 

8 

Means  &  Co. 

W.  L.  Chaney. 

On  acct. 

5 

11 

Student  & 
Brown. 

Stout  &  Co. 

Mdse. 

6 

26 

(t 

Miller  &  Co. 

On  acct. 

7 

26 

C( 

(1 

(( 

BILLS 


Our 

No. 

When 
Received. 

Maker's 

No. 

Drawer  or 
Indorser. 

Drawee  or 
Maker. 

In  Whose 
Favor. 

For  What 
Paid. 

Where  Payable. 

1 

May 

7 

495 

Student  & 
Brown. 

J.  R.  Keel. 

Student  & 

Brown. 

On  acct. 

His  ofiBce. 

2 

9 

Student  & 
Brown. 

Morris  &  Co, 

(< 

- 

3 

9 

C 

B.  R.  Evans. 

Mdse. 

4 

13 

Student  & 
Brown. 

J.  J.  Ray. 

On  acct. 

5 

18 

Student  & 
Brown. 

J.  J.  Ray. 

<< 

6 

19 

J.  J.  Ray. 

Mdse. 

7 

23 

B.  R.  Evans. 

(( 

1 

STEVENSON  S   INTRODUCTORY   BOOKKEEPIKO. 


71 


PAYABLE. 


Date. 

Time, 

WTien  Due. 

Amount. 

WTien  and  How  Paid. 

Tr. 

Mo. 

Day. 

J. 

F. 

M. 

A. 

M. 

J. 

J. 

A. 

8. 

0. 

If. 

D. 

1897 

May 

5 

3  days. 

1897 

11 

Int. 
300 

6% 

May 

11 

Cash. 

(( 

6 

3  days. 

12 

720 

(( 

12 

<( 

(( 

8 

10  days. 

21 

Int. 
50 

6% 

(( 

21 

(( 

(( 

8 

3  days. 

14 

100 

(( 

14 

ii 

(t 

11 

7  days. 

21 

Int. 
345 

6% 

(( 

21 

(( 

(( 

26 

30  days. 

28 

Int. 
1,200 

6% 

(( 

26 

60  days. 

28 

1,300 

RECEIVABLE. 


Date. 

Time. 

When  Due. 

Amount. 

When  and  How  Paid. 

Yr. 

Mo. 

Day. 

J. 

F. 

M. 

A. 

M. 

J. 

J. 

A. 

S. 

o. 

N. 

D. 

1897 

May 

7 

3  days. 

1897 

13 

200 

May 

13 

Cash. 

9 

3  days. 

<{ 

15 

200 

(< 

15 

(( 

9 

10  days. 

<( 

23 

Int. 
470 

6% 

(( 

23 

(( 

13 

30  days. 

(( 

15 

100 

<( 

20 

Discounted. 

17 

10  days. 

(( 

30 

150 

({ 

30 

Cash. 

19 

10  days. 

(( 

1 

100 

23 

60  days. 

>( 

25 

436 

50 

72 


STEVENSON  S   INTKODUCTOKY    BOOKKEEPING. 


BUYING  PEICE-LIST  FOE  SET  E^ 


Description. 

Quantity. 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

Moquette, 

Yard, 

1.20 

1.18 

1.25 

1.25 

1.40 

1.15 

1.17M 

1.15 

1.16% 

1.20 

Body  Brussels, 

Yard, 

1.10 

1.05 

1.07 

1.20 

1.17 

1.07 

1.20 

1.10 

1.15 

1.16% 

Ingrain, 

Yard, 

.60 

.65 

.70 

.75 

.62>^ 

.55 

.80 

.66% 

.69 

.64 

Matting, 

Yard, 

.45 

.55 

.siy^ 

.65 

.60 

.40 

.43 

.50 

.53 

.49 

Lining, 

Yard, 

.05 

.09 

.12 

.10 

.20 

.15 

.16% 

.10 

.06 

.09 

Tapestry  Brussels, 

Yard, 

.65 

.50 

.55 

.70 

.80 

.75 

.63 

.58 

.45 

.60 

Oilcloth, 

Yard, 

.35 

.30 

.331^ 

.39 

.43 

.48 

.40 

.45 

.37>^ 

.30 

"Wilton, 

Yard, 

2.00 

2.16% 

2.57>^ 

2.66% 

2.20 

2.17 

2.50 

2.65 

2.45 

2.17 

linoleum, 

Yard, 

.65 

.55 

.50 

.75 

.85 

.83 

.85 

.53 

.66% 

.65 

SELLING  PEICE-LIST  FOE  SET  E^ 


Description. 

Quantity, 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

Moquette, 

Yard, 

1.35 

1.373^ 

1.40 

1.52 

1.32 

1.33^ 

1.25 

1.27 

1.35 

1.42 

Body  Brussels, 

Yard, 

1.30 

1.16% 

1.35 

1.25 

1.33J^ 

1.23 

1.35 

1.25 

1.43 

1.30 

Ingrain, 

Yard, 

.70 

,73 

.79 

.88 

.75 

.67^ 

.85 

.75 

.74 

.75 

Matting, 

Yard, 

.55 

.65 

.eiVz 

.66% 

.72 

.50 

.49 

.63 

.60 

.56 

Lining, 

Yard, 

.08 

.12 

.16% 

.12)^ 

.25 

.16% 

.19 

.12^ 

.08 

.12J4 

Tapestry  Brussels, 

Yard, 

.85 

.73 

.65 

.74 

•SW2 

.80 

.75 

.67 

•5iy2 

■em 

Oilcloth, 

Yard, 

.45 

.37>i 

.45 

.50 

.56 

.60 

.47^ 

.66% 

.50 

.43 

Wilton, 

Yard, 

2.50 

2.75 

2.95 

3.00 

2.85 

2.50 

3.00 

3.25 

3.05 

2.98 

Linoleum, 

Yard, 

.80 

.05 

.70 

.85 

1.00 

.97 

1.00 

.75 

•sm 

.90 

STEVENSON  S   INTRODUCTOKY   BOOKKEEPINCJ. 


73 


MEMORANDA.— SET  E^ 


May. 

1.  Student  and  C.  L.  Brown  have  this  day  formed  a  copartnership,  under  the  firm  name  of 
Student  &  Brown,  for  the  purpose  of  conducting  a  carpet  business.  The  partners  invest 
equal  amounts,  and  are  to  share  equally  in  gains  and  losses.  In  consideration  of  extra  service. 
Student  is  to  be  paid  by  the  firm  a  salary  of  $75  a  month. 

1.  Student  invests  cash,  $3,300.     Student  owes  E,  Noles,  Beatrice,  on  account,  $300,  which  is  to 

be  paid  from  the  business.     0.  L.  Brown  invests  cash,  $8,000. 

2.  Bot.  of  Stout  &  Co.,  St,  Louis,  on  account :  500  yds.  moquette  ;  1,200  yds.  matting  ;  2,000  yds, 

lining  ;  800  yds.  ingrain. 

3.  Opened  an  account  at  First  National  Bank,  and  deposited  cash,  $4,000. 

Note, —  In  this  set  we  will  keep  no  account  with  the  bank  in  our  Ledger,  as  cash  in  bank  is  as  much  on  hand  as  if 
it  were  in  our  safe.  When  making  a  deposit  we  fill  out  a  slip  like  the  following,  and  hand  it  to  the  receiving 
teller,  together  with  the  various  forms  of  money.  He  then  enters  the  amount  of  our  deposit  in  a  pass- 
book and  hands  the  book  to  us.  At  the  end  of  each  month  we  leave  the  pass-book  at  the  bank.  It  is  then 
"  written  up  "  or  balanced,  and  returned  to  us  with  the  checks  we  have  drawn  during  the  month. 

DEPOSIT  SLIP. 


First  National  Banhi 


OP.. 


Deposited  for  accoxmt  of 

Student  &  Brown. 


May  3  ^^g 


Currency . 
Silver  . . . . 


Gold 


Checks . 


5 

600 

200 

70 

5 

20 


900 


2,000 
100 

1,000 
900 


|4,000 


3.  Bought  of  Fisher  &  Co.,  New  York:   700  yds.  linoleum;  900  yds.  oilcloth;  300  yds.  Wilton; 

100  yds.  tapestry  Brussels.  Gave  in  payment,  cash,  $700,  balance  on  account. 
Note. —  There  are  two  methods  of  disposing  of  this  transaction  when  keeping  a  Cash  Book  and  Journal  as  coordi- 
nate books  of  original  entry.  First,  debit  Mdse.  and  credit  Fisher  &  Co.  with  the  full  amount  of  the  bill  in 
the  Journal;  then  debit  Fisher  &  Co.  and  credit  Cash  in  the  Cash  Book  for  the  amount  of  the  cash  payment. 
Second,  debit  Mdse.  and  credit  Fisher  &  Co.  for  the  balance  on  account  in  the  Journal;  then  debit  Mdse. 
for  the  cash  payment  in  the  Cash  Book.    The  first  plan  is  the  better  for  this  set. 

4.  Sold  J.  K.  Keel,  St.  Joe,  for  cash:   500  yds.  lining;  200  yds.  matting;  100  yds.  oilcloth;  50  yds. 

linoleum. 


74  Stevenson's  introductory  bookkeeping. 

4.  Engaged  a  clerk  at  $13  a  week. 

(Memorandum  only;  no  Journal  entry  required.) 

5.  Bought  of  Means  &  Co.,  Philadelphia,  on  account :   100  yds.  body  Brussels ;  50  yds.  tapestry 

Brussels. 
5.   A^ccepted  Stout  &  Co.'s  draft  on  us,  at  3  days,  favor  of  E.  Randolph,  $300. 

5.  Sold  J.  E..  Keel,  on  account:   100  yds.  moquette;  200  yds.  ingrain;  400  yds.  lining;  75  yds. 

tapestry  Brussels. 

6.  Accepted  Stout  &  Co.'s  draft  on  us,  at  3  days,  favor  R.  A.  Nichols,  $720. 

7.  Sold  Morris  &  Co.,  Omaha,  on  account:   50  yds.  body  Brussels;  75  yds.  Wilton;  150  yds.  lining. 

7.  Drew  a  draft  at  3  days'  sight  on  J.  R.  Keel,  favor  of  ourselves,  which  he  accepted,  $200. 

8,  Bought  of  Fisher  &  Co.:   100  yds.  lining;  50  yds.  tapestry  Brussels.     Grave  in  payment  our 

note  at  10  days,  with  interest,  $20;  balance  on  account. 

8.  Accepted  Means  &  Co.'s  draft  on  us,  at  3  days,  favor  of  W.  I.  Chaney,  $100. 

9.  Drew  a  draft  at  3  days  on  Morris  &  Co.,  favor  of  ourselves,  which  they  accepted,  $200. 

9.   Sold  J.  J.  Ray,  Nortom:   500  yds.  matting;  300  yds.  oilcloth;  200  yds.  ingrain.     Received  in 

payment  his  check  on  Second  National  Bank,  $250;  balance  on  account. 
9.   Sold  B.  R.  Evans,  Lincoln  :   500  yds.  lining  ;  300  yds.  ingrain  ;  400  yds.  matting.     Received 
in  payment  his  note  at  10  days,  with  interest. 
11.   Bought  of  Stout  &  Co.:   200  yds.  ingrain  ;  500  yds.  matting.     Gave  in  payment  otir  note  at  7 

days,  with  interest. 
11.   Paid  our  acceptance  of  5th  inst.,  favor  E.  Randolph,  due  to-day,  in  cash, 

11.  Paid  E.  Noles  on  account,  by  our  check,  $100. 

12.  Paid  our  acceptance  of  6th  inst.,  favor  of  Stout  &  Co.,  due  to-day,  $720. 

12.  Paid  clerk's  salary  for  the  week,  in  cash,  $13. 

13.  Received  cash  of  J.  R.  Keel  for  his  acceptance  of  7th  inst.,  due  to-day, 

13.  Drew  a  draft  at  30  days  on  J.  J.  Ray,  favor  of  ourselves,  which  he  accepted, 

14.  Paid  our  acceptance  of  the  8th  inst.,  favor  W.  I.  Chaney,  due  to-day,  by  our  check  on  the  First 

National  Bank,  $100. 

14,  C.  L.  Brown  drew  from  the  business  for  his  private  use,  by  our  check  on  the  First  National 

Bank,  $75. 
Note. — Debit  C.  L.  Brown,  Private. 

15.  Paid  rent  of  store  by  our  check  on  First  National  Bank,  $30. 

15.  Received  Morris  &  Co.'s  check  on  Farmers'  Bank,  for  their  acceptance  of  9th  inst.,  due  to- 

day, $200. 

16.  Bought  of  Miller  &  Co.,  on  account,  at  10  days,  the  block  comer  11th  and  Congress,  $3,000. 
16.   Acc^ted  Means  &  Co.'s  draft  on  us,  at  3  days,  favor  themselves,  to  balance  account. 

16.   Drew  a  draft  at  10  days'  sight  on  J.  J.  Ray,  favor  of  ourselves,  and  sent  it  to  him  to  be  accepted 
and  returned.     Amount  of  draft, 


Note. —  This  is  to  be  merely  a  memorandum,  no  Journal  entry  being  required  until  draft  is  returned.     iTou  will, 
therefore,  make  no  entry  until  the  draft  is  returned  accepted, 

18.  J.  J.  Ray  returned  draft  accepted.     Date  of  acceptance.  May  17. 

19.  Sold  J.  J.  Ray:  50  yds.  moquette;  50  yds.  Wilton;  lOO  yds.  linoleum.    Received  in  payment, 

cash,  $72.50;  his  note  at  10  days,  $100;  balance  on  account. 

20.  Had  J.  J.  Ray's  acceptance  of  13th  inst.  discounted  at  First  National  Bank.     Received  cash 

for  net  proceeds. 

21.  Paid  our  note  of  the  11th  inst.,  favor  Stout  &  Co.,  due  to-day,  with  interest,  in  cash. 
21.   Paid  our  note  of  8th  inst.  in  favor  of  Fisher  &  Co.,  due  to-day,  with  interest,  in  cash. 

21.  Bought  of  Means  &  Co.,  on  account,  100  yds.  ingrain. 

22.  Paid  our  acceptance  of  the  16th  inst.,  favor  of  Means  &  Co.,  due  to-day,  in  cash. 

22.  Received  cash  of  B.  R.  Evans  for  his  note  of  the   9th  inst.,  due  to-day,  with  interest. 

23.  Sold  B.  R.  Evans  300  yds.  lining;  300  yds.  matting;  400  yds.  oilcloth;   50  yds.  moquette. 

Received  in  payment  his  note  at  60  days. 
25.  Accepted  Means  &  Co.'s  draft  on  us  at  6  days,  favor  of  themselves,  for  amount  of  bill  of  21st 
inst. 


Stevenson's  introductory  bookkeeping.  75 

26.  Gave  Miller  &  Co.,  on  account,  our  note  at  30  days,  with  interest,  $1,200 ;   our  check  ©n  First 

National  Bank,  $500 ;  accepted  their  draft  on  us  at  60  days,  favor  of  themselves,  to  balance 
their  account,  $1,300. 

27.  Student  drew  from  the  business  for  private  use,  75  yds.  Wilton;  200  yds.  lining;  iO  yds. 

tapestry  Brussels. 

28.  Paid  clerk's  salary  for  the  week,  in  cash,  $13. 

29.  Sold  S.  A.  Jones,  Rockport,  on  account :  400  yds.  linoleum  ;  200  yds.  moquette. 
31.   Paid  Student  his  salary  for  extra  service  for  the  month,  in  cash,  $75. 

Inventory. —  (  Estimate  present  value  at  cost.) 


150  yds.  moquette. 
50  yds.  body  Brussels. 
400  yds.  ingrain. 
300  yds.  matting. 
1,200  yds.  lining. 


75  yds.  tapestry  Brussels. 

100  yds.  oilcloth. 

100  yds.  Wilton. 

150  yds,  linoleum. 

Real  estate,  now  valued  at  $2,500. 


June. 


1.   J.  C.  Cross  has  this  day  been  admitted  as  a  partner  in  the  business  of  Student  and  C.  L. 

Brown,  the  name  of  the  firm  to  be  Student,  Brown  &  Co.,  the  gains  and  losses  to  be  shared 

equally. 
1.   J.  C.  Cross  invests  cash  on  deposit  in  First  National  Bank,  $5,500. 
Note. —  Cross  will  be  worth  more  than  the  others,  although  sharing  equally  with  them  in  the  losses  and  gains. 

1.   Received  of  J.  J.  Ray,  for  his  note  of  the  19th  ult.,  due  to-day,  $100. 

1.    Bought  of  Fisher  &  Co. :  25  yds.  body  Brussels  ;  100  yds.  matting  ;  25  yds.  tapestry  Brussels. 

Accepted  his  draft  on  us  at  60  days,  favor  M.  W.  Fuller,  $50.     Balance  on  account. 
3.   Paid  our  acceptance  of  the  25th  ult.,  favor  Means  &  Co.,  due  to-day,  by  our  check  on  First 

National  Bank. 

3.  Sold  L.  A.  Roberts,  Minneapolis,  on  account :   50  yds.  Wilton  ;    100   yds.  lining ;    25    yds. 

linoleum. 

4.  Accepted  Fisher  &  Co.'s  draft  on  us  at  10  days  sight,  favor  E.  H.  Hartman,  payable  at  First 

National  Bank,  $200. 

5.  Paid  cash  for  repairing  house  on  our  block,  $100.     (Debit  Real  Estate.) 

6.  Drew  a  draft  at  30  days'  sight  on  L.  A.  Roberts,  favor  of  ourselves,  $J00,  and  discounted  same 

at  First  National  Bank.     Proceeds  placed  to  our  credit. 

7.  Paid  Fisher  &  Co.'s  account  in  full,  by  our  check  on  First  National  Bank. 

7.  Received  cash  of  L.  A.  Roberts,  to  balance  account. 

8.  Bought  a  desk  and  chair  for  office  for  cash,  $30. 

8.  Bought  of  Means  &  Co.,  25  yds.  body  Brussels.     Gave  in  payment  our  note  at  six  days,  with 

interest. 

9.  Sold  Martin  &  Martin,  Denver  :   100  yds.  lining  ;  200  yds.  ingrain  ;  50  yds.  Wilton.     Received 

in  payment  their  note  at  six  days,  with  interest,  $200.     Balance  on  account. 
10.   Paid  E.  Noles's  sight-draft  on  us,  by  our  check  on  First  National  Bank,  $100. 

10.  Bought  a  sight-draft  on  New  York,  $500.     Exchange  at  \%,  $1.     Paid  for  same  by  our  check 

on  First  National  Bank,  $501.     Sent  draft  to  Stout  &  Co.  on  account. 

11.  Accepted  Fisher  &  Co.'s  draft  on  us  at  20  days'  sight,  favor  R.  Reme,  payable  at  First  National 

Bank,  $100. 

12.  Prepaid  our  acceptance  of  1st  inst.,  favor  M.  W.  Fuller.     Paid  the  proceeds  by  our  check  on 

First  National  Bank. 

12.  Sold  L.  A.  Roberts,  on  account:   75  yds.  oilcloth;  50  yds.  moquette. 

13.  Bought  of  Means  &  Co.:   1,000  yds.  lining;  50  yds.  oilcloth;  60  yds.  Wilton.     Gave  in  pay- 

ment, cash,  $15;  balance  on  account. 

14.  Drew  draft  at  30  days'  sight  on  S.  A.  Jones,  and  sent  it  to  Means  &  Co.  on  account,  less  dis- 

count.    Face  of  draft,  $100;  discount  oflp  to  maturity,  33  days,  55  cts. 
14.   Paid  Fisher  &  Co.'s  sight-draft  on  us,  by  our  check  on  First  National  Bank,  $100. 
16.   Received  of  L.  A.  Roberts  his  note  for  30  days,  to  balance  account. 


76  Stevenson's  introductory  bookkeeping. 

16.  Gave  Means  &  Co.,  on  account,  the  note  received  from  L.  A.  Roberts  15tli  inst.     Discounted, 

and  charged  proceeds  to  their  account. 

17.  Paid  our  note  of  the  8th  inst.,  favor  Means  &  Co.,  due  to-day,  with  interest,  in  cash. 

17.  Our  acceptance  of  the  4th  inst.,  favor  E.  H.  Hartman,  due  to-day,  has  been  charged  to  our  ac- 

count at  First  National  Bank. 

18.  Received  cash  of  Martin  &  Martin,  for  their  note  of  9th  inst.,  due  to-day,  with  interest. 

20.  Bought  of  Stout  &  Co. :   50  yds.  Wilton ;   500  yds.  lining.     Gave  in  payment  our  check  on 

First  National  Bank. 

21.  Sold  S.  A.  Jones :   500  yds.  matting ;   75  yds.  ingrain ;   25  yds.  tapestry ;   100  yds.  moquette. 

Received  in  payment,  cash,  $100 ;  his  note  at  3  days,  $50 ;  balance  on  account, 

23.  Drew  a  sight-draft  on  S.  A.  Jones  and  sent  to  E.  Noles  on  account,  $100. 

24.  Sold  L.  A.  Roberts,  on  account :    100  yds.  body  Brussels ;  50  yds.  oilcloth. 

24.  Prepaid  our  acceptance  of  the  26th  ult.,  favor  Miller  &  Co.     Face  of  acceptance,  $1,300.     Dis- 

count off,  34  days,  $7.37.     Paid  proceeds  in  cash. 

25.  Paid  E.  Noles  cash  to  balance  his  account. 

26.  Sold  S.  Oldman,  Beloit,  for  cash,  50  yds.  body  Brussels. 

27.  Received  of  S.  A.  Jones,  cash  for  his  note  of  21st  inst.,  due  to-day. 

27.  Deposited  all  money  on  hand  in  First  National  Bank.     (Superfluous  if  no  bank  account.) 
Note. — Post  all  cash  items  to  this  date  and  find  the  difference  between  the  sides  of  Cash  account. 

28.  Paid  our  note  of  26th  ult.,  favor  Miller  &  Co.,  due  to-day,  with  interest,  by  our  check  on  First 

National  Bank. 
28.   Received  of  S.  A.  Jones  his  check  on  Citizens  Bank  to  balance  account. 


Inventory. 


50  yds.  body  Brussels. 

125  yds.  ingrain. 

200  yds.  matting. 

75  yds.  tapestry  Brussels. 

75  yds.  oilcloth. 


50  yds.  Wilton. 

125  yds.  linoleum. 

Real  estate  valued  at  $3,000. 

Office  desk  and  chair, 


QUESTIONS  ON  SET  E^ 


1.  What  is  a  Cash  Book  ? 

2.  How  is  a  Double-Entry  Cash  Book  kept  ? 

3.  Does  a  Cash  Book  make  a  Cash  account  in  the  Ledger  unnecessary  ? 

4.  Which  side  of  a  Cash  Book  is  the  larger,  if  either  ? 

5.  All  accounts  named  on  the  debit  side  of  the  Cash  Book  are  posted  to  which  side  of  the  accounts  in  the  Ledger  ? 

6.  From  the  credit  side  of  the  Cash  Book,  you  post  to  which  side  of  the  accounts  named  ? 

7.  What  is  the  purpose  of  a  Bills  Receivable  Book  ?    Of  a  Bills  Payable  Book  ? 

8.  Explain  the  ruling  of  a  Cash  Book. 

9.  Suppose  the  right  page  of  a  C^sh  Book  to  be  full,  and  but  a  few  items  on  the  debit  side  :  what  should  you  do? 

An8.  Draw  a  single  line  across  the  amount  columns  on  the  credit  side,  and  draw  one  opposite  to  it  across 
the  amount  columns  on  the  debit  side;  also  draw  a  single  line  under  the  last  item  on  the  debit  side.  Foot  in 
pencil,  then  in  ink,  and  carry  to  top  of  columns  on  succeeding  pages. 

10.  Explain  the  conditions  and  results  shown  by  each  of  the  accounts  for  May  and  June. 

11.  Is  the  balance  of  Bills  Receivable  account  the  same  as  the  sum  of  the  unpaid  notes  shown  in  your  Bills  Re- 

ceivable Book  ? 

12.  Is  the  sum  of  notes  unredeemed,  as  shown  by  your  Bills  Payable  Book,  the  same  as  the  balance  of  Bills  Payable 

account  ? 

13.  For  what  puriwse  may  the  second  columns  in  a  Cash  Book  be  used  ? 

14.  When  keeping  a  Cash  Book,  how  may  a  Cash  account  be  kept  ? 


Stevenson's  introductory  bookkeeping.  77 


SUPPLEMENTARY  SET  E^ 


May. 

1.  Jesse  Bright  began  business  with  the  following  resources  and  liabilities:   Resources  —  Mdse., 

$1,000;  John  Smith,  on  account,  $500;  bills  receivable,  notes   on   hand,  $600;    cash,   $700. 
Liabilities  —  Owes  Peter  Cooper,  on  account,  $200;  bills  payable,  notes  outstanding,  $800. 

2.  Bought  $500  worth  of  mdse.  of  A.  Mann,  giving  in  payment  a  draft  drawn  on  John  Smith  at  10 

days'  sight  for  $500,  at  13  days'  discount  and  cash  to  balance. 

3.  Sold  mdse.  to  S.  Somebody,  invoiced  at  $600.     Received  in  payment  a  bank  draft  drawn  this 

date,  by  D.  M.  Davis,  cashier  of  First  National  Bank,  Emporia,  Kan.,  on  First  National  Bank, 
New  York,  in  our  favor. 

4.  Drew  a  sight-draft  on  N.  O.  Good  for  $600,  the  amount  of  his  notes  in  our  possession  now  due. 

Cashed  same  at  bank,  less  \%  for  collection. 

5.  Bought  for  cash,  at  Citizens  Bank  of  Emporia,  a  draft  drawn  on  Metropolitan  Bank,  at  Kansa.i 

City,  Mo.,  for  $300,  paying  for  same  ^%  exchange,  and  sent  same  to  John  Johnson,  Some- 
where, in  payment  of  our  notes  for  $300,  now  due. 

6.  Paid  Peter  Cooper  on  account,  $90  in  cash;  mdse.  valued  at  $60;  and  gave  him  our  note  at  10 

days,  drawing  10%  interest,  for  balance. 

Inventory. — Mdse.,  $5.    Found  present  worth. 

8.  Admitted  W.  Holtzschue  as  a  partner  without  investment,  giving  a  half  interest  in  the  net 

assets  of  the  business.     (  Debit  Bright  and  credit  Holtzschue  for  one-half  of  Bright's  worth.) 

9.  Bought  of  Edmund  Stanley,  on  account,  at  10  days,  merchandise  invoiced  at  $3,000. 

10.  Sold  merchandise  to  E.  C.  Little,  billed  at  $1,800,  taking  in  payment  a  bank  draft  for  $1,000, 

a  sight-draft  on  John  Madden  for  $500,  a  note,  at  30  days,  given  by  W.  E.  Bray,  May  1,  for 
$300,  drawing  interest  at  10%. 

11.  Sold  mdse.,  for  cash,  $2,000.     Mdse.  inventory  this  date,  $800. 

12.  Admitted  M.  F.  Knappenberger  as  a  partner,  with  a  one-third  interest  in  the  capital  of  the 

firm,  on  payment  of  $1,000,  in  cash. 

13.  Sold  merchandise  for  cash,  $600.     Discounted  Bray's  note  at  the  bank,  receiving  cash  for  the 

proceeds. 

15.  Bought  sugar  in  warehouse  at  San  Francisco,  paying  $1,200. 

16.  Received  cash  for  sight-draft  on  John  Madden. 

19.  Sold  sugar,  by  telegraph,  for  $1,800,  receiving  Western  Union  check  for  the  amount.    Paid 

Edmund  Stanley  cash  in  full  of  account. 

20.  Sold  all  mdse.  on  hand  for  $300,  cash. 

21.  Found  worths  of  proprietors. 


78  STEVENSON 'S    INTRODUCTORY    BOOKKEEPING. 


SUPPLEMENTARY  SET  E^ 


June. 

1.   Wm.  Brunswick,  proprietor  of  Sunny  Slope  farm,  Rosedale,  began  to  keep  books  this  date 
His  resources  and  liabilities  were  as  follows  : 

RESOUECES. 

Cash,  $300. 

Kobt.  Mansfield  owed  on  account,  $75. 

Real  Estate  :   100  acres  cultivated  land,  at  $200  ;  200  acres  timber  land,  at  $75  ;  dwelling,  bam,  and 

other  improvements,  $2,000. 
Live  Stock  :   6  horses,  at  $100  each  ;  8  colts,  at  $40 ;  6  milch  cows,  at  $50  ;  100  head  of  Holstein 

cattle,  at  $75  ;  6  hogs,  at  $7  ;  5  goats,  at  $3. 
Poultry  :   100  chickens,  worth  $20  ;  50  turkeys,  $25  ;  40  ducks,  $8. 
Produce  :   50  bu.  wheat,  at  90  cts.;  500  bu.  corn,  at  35  cts.;  120  bu.  oats,  at  40  cts.;  75  bu.  potatoes, 

at  60  cts.;  15  tons  hay,  at  $8. 
Farm  Implements  :   1  two-horse  Studebaker  wagon,  $100  ;  1  family  carriage,  $250  ;  2  plows,  $30  \ 

cultivator,  $50  ;  1  shovel  plow,  $15  ;  other  utensils,  $25. 

LIABILITIES. 

Mortgage  on  farm,  due  in  four  years,  dated  May  1,  1897,  with  interest  at  8%,  $3,000 ;  owe  Camp- 
bell &  Co.  on  account, 


3.    Sold  to  R.  Frost,  1  two-horse  harrow  for  $13,  cash. 

5.    Sold  to  Cooper  &  Co.,  for  cash,  3  dozen  chickens,  at  $3  ;  20  lbs.  butter,  at  15  cts.;  12  bu.  pota- 
toes, at  75  cts. 

8.  Paid  man  for  fixing  fences,  $10  cash.     Paid  cash  tp  W.  M.  Mann  for  groceries,  $6.50. 

12.   Sold  25  bu.  apples,  at  50  cts.,  to  H.  H.  Kern  for  cash.     Bought  on  account  from  J.  B.  Hinkle, 
3  Berkshire  hogs,  at  $12. 

20.  Bought  for  cash  12  bu.  seed-corn,  at  50  cts.     Paid  boy  for  plowing,  5  days,  at  75  cts. 
25.    Paid  man  for  planting  corn,  6  days,  at  $1.     Paid  hired  man,  for  month's  wages,  $35. 

July, 

1.   Sold  for  cash  6  bu.  cherries,  at  $3.     Dug  and  hauled  to,  market  15  bu.  early  potatoes,  for  which 
was  received  $1  per  bushel,  in  cash. 

9.  Paid  cash  for  groceries,  $5;  dry -goods,  $10;  paid  one  year's  subscription  to  Rosedale  GazettCy 

$2.     Paid  yearly  contribution  to  church,  $25. 

21.  Sold  Martin  &  Co.,  20  doz.  eggs,  at  10  cts.;  25  lbs.  butter,  at  20  cts.;  6  doz.  spring  chickens,  at 

$3.     Received  in  payment  25  lbs.  sugar,  at  10 cts.;  30  lbs.  coffee,  at  20  cts.;  3  sacks  flour,  at  $1. 
Balance  in  cash. 

Note. — Enter  in  C.  B.,  crediting  Produce  $25,  and  debiting  Family  Expenses  $11.50.   Cash  takes  care  of  itself. 
Do  you  see  how  ? 
25.    Paid  in  cash  hired  man's  salary  for  month  of  July,  $35. 

August. 
8.   Sold  B.  F.  Butler  for  cash,  10  hogs,  at  $12  per  head. 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


79 


Sold  T.  M.  Wilkes  on  account, 


29. 


15.  Paid  cash  for  shoeing  horses  and  repairing  cultivator,  $6. 

16.  Sold  at  market  for  cash,  garden  products  to  the  amount  of  i 
15  bu.  turnips,  at  20  cts.;  100  heads  cabbage,  at  6  ots. 

34.   Bought  of  H.  H.  Kern  on  account,  young  fruit-trees,  as  follows  :  75  peach,  150  apple,  30 
cherry,  and  12  pear.     Paid  25  cts.  each.     Paid  man  for  transplanting  same,  $5  in  cash. 
(Orchard  account.) 

25,   Paid  hired  man  wages  for  August,  $35;  paid  cash  for  groceries,  $9. 

September. 
3.    Paid  cash  for  children's  school  books,  $9.75. 

9.   Sold  to  S.  P.  Bell  for  cash,  100  head  Holstein  cattle,  at  $150  per  head.     Paid  freight  on  same 
in  cash,  $40. 

18.  Bought  for  cash,  150  head  of  cattle  at  $40  per  head. 
27.   Paid  hired  man's  wages  for  September  in  cash,  $35. 

Octoher. 

2.   Sold  for  cash  :   1,600  bu.  com,  at  30  cts.;  900  bu.  apples,  at  60  cts.;  150  bu.  potatoes,  at  50  cts. 

19.  Bought  of  Jenkins  Bros.,  Kansas  City,  for  cash,  1  piano,  $250. 

25.   Bought  of  D.  R.  Stern,  clothing  and  dry-goods  to  the  amount  of  $115,  and  paid  for  same  in 
cash. 

N^ovember. 

1.    Paid  J.  B.  Hinkle  $36,  in  full  of  account. 
19.   Received  cash  from  T.  M.  Wilkes  on  account,  $9. 
22.   Paid  Slater  Bros,  cash  for  papering  house,  $25. 

December. 
8.    Sold  3  head  horses  for  $500  cash. 

22.    Sold  5  doz.  turkeys,  at  $10;  6  doz.  chickens,  at  $4.50;  3  doz.  ducks,  at  $5. 
24.   Paid  $75  cash  for  Christmas  presents;  railroad  ticket  to  St.  Louis,  $7,  for  wife. 


iNVENTokY.     (Close  of  year.) 


Real  estate  valued  at  $37,800;  orchard  at  cost. 
Live  stock  :   150  cattle,  valued  at  $50  each. 

3  horses,  valued  at  $125  each. 
6  colts,  valued  at  $90  each. 

6  milch  cows,  at  $50  each. 

4  hogs,  valued  at  $5  each. 
Poultry  :   95  chickens,  valued  at  $15. 

12  turkeys,  valued  at  $6. 
20  ducks,  valued  at  $5. 


Produce  :   600  bu.  wheat,  at  90  cts.  per  bu. 

700  bu.  corn,  at  50  cts.  per  bu. 

700  bu.  potatoes,  at  60  cts.  per  bu. 

250  bu.  apples,  at  $1  per  bu. 

25  tons  hay,  at  $9  per  ton. 
Farm  implements,  valued  at  $400. 


SET  F\ 

TEA,  COFFEE  AND  SPICE  BUSINESS. 


JULY,  AUGUST  AND  SEPTEMBER. 


Objects. —  ( 1 )    Opening  and  closing  books.     (  2 )    Drill  in  writing  business  forms.     ( 3  )   Use 
of  a  Cash  Book,  Sales  Book,  Invoice  Book,  Journal,  Ledger,  and  Balance  Sheet. 


Instructions. — All  cash  received  or  paid  out  is  entered  in  the  Cash  Book.  No  cash  account 
is  kept  in  the  Ledger.  The  balance  on  hand  as  shown  by  the  Cash  Book  is  carried  to  the  Trial 
Balance  when  it  is  desired  to  take  a  Trial  Balance. 

All  sales  are  entered  in  the  Sales  Book.  If  the  sale  is  for  cash,  the  amount  must  be  carried 
from  the  Sales  Book  to  the  Cash  Book,  and  the  page  of  the  Cash  Book  and  the  letter  C  put  in  the 
Sales  Book  check-mark  column,  and  the  page  of  the  Sales  Book  with  the  letter  S  put  in  the  Cash 
Book  check-mark  column.  The  total  of  the  Sales  Book  is  posted  to  the  credit  side  of  Merchan- 
dise account  in  the  Ledger. 

The  Invoice  Book  is  the  opposite  of  the  Sales  Book.  In  it  are  entered  all  purchases  of  mer- 
chandise. The  usual  plan  in  business  is  to  have  a  large  book  in  which  the  bills  are  pasted  when 
received  and  the  amounts  carried  into  a  money  column  to  the  right  of  the  page.  The  footings  are 
carried  forward  from  page  to  page  and  posted  to  the  debit  side  of  Merchandise  account  at  stated 
times.  The  parties  from  whom  the  goods  are  purchased  are  credited  directly  from  the  Invoice 
Book,  and  page  check  placed  by  their  names  on  the  bill.  The  student  may  keep  the  form  given  in 
this  set,  which  will  illustrate  its  advantages  as  a  time  saver. 

In  case  of  cash  purchases,  carry  from  Invoice  Book  to  the  credit  side  of  the  Cash  Book,  and 
check  in  Cash  Book  with  I  and  page  of  Invoice  Book,  and  check  in  Invoice  Book  with  C  and  the 
page  of  Cash  Book.  The  ruling  of  Cash  Book,  Sales  Book,  Invoice  Book  and  Journal  are  all  the 
same,  the  Cash  Book,  however,  filling  two  opposite  pages  and  keeping  totals  opposite,  while  the 
others  fill  but  one  page  at  a  time. 

In  placing  in  the  Ledger  the  page  from  which  the  item  came,  add  the  first  letter  of  the  Book 
as  weU,  as  C\  I",  S^,  J». 


•'  Custom  in  youth  becomes  nature  in  maturity." 

Accuracy,  order  and  dispatch  are  primary  elements  of  success.  These 
may  be  achieved  by  energy  and  perseverance,  discretion  and  judgment, 
sagacity  and  shrewdness,  courtesy  and  civiUty,  integrity  and  fidelity,  cour- 
age and  fortitude. — Caton. 


-6 


82  Stevenson's  introductory  bookkeeping. 


STEPS  TO  BE  TAKEN  IN  WRITING  SET  F^ 


1.  Enter  the  Transactions  in  Proper  Form  in  the  original  books  of  entry,  which  are  (1)  Cash 
Book,  (2)  Sales  Book,  (8)  Invoice  Book,  (4)  Itemized  Journal,  (a)  The  Cash  Book  will  contain 
the  cash  received  and  paid  out,  and  the  names  of  the  accounts  causing  it  to  be  received  or  disposed 
of.  (h)  The  Sales  Book  will  contain  an  itemized  record  of  all  sales  and  the  name  of  the  account 
to  be  debited.  Should  an  individual  pay  part  of  a  bill  in  cash,  debit  him  with  the  whole  amount 
in  the  Sales  Book  and  credit  him  with  the  cash  payment  from  the  Cash  Book,  (c)  The  Invoice 
Book  contains  a  record  of  all  merchandise  purchased.  Should  a  bill  be  paid  in  part  at  the  time  of 
purchase,  credit  the  individual  from  whom  the  goods  are  bought  directly  from  the  Invoice  Book 
with  the  full  amount  of  the  invoice  and  debit  him  from  the  Cash  Book  with  the  amount  paid. 
{d)  The  Itemized  Journal  is  kept  as  in  Set  D. 

2.  Rule  and  Balance  Cash  Book. 

3.  Rule  and  Foot  Sales  Book. 

4.  Rule  and  Foot  Invoice  Book. 

5.  Rule  and  Foot  Journal. 

6.  Post,  remembering  to  post  the  footings  of  the  Sales  Book  and  Invoice  Book  as  explained 
in  the  instructions. 

7.  Take  Lead-pencil  Footings  op  Accounts. 

8.  Take  Trial  Balance  op  Differences. 

9.  Close  Accounts  showing  Losses  and  G-ains. 

10.  Close  Loss  and  Gain  Account. 

11.  Make  Financial  Statement  of  Losses  and  Gains. 

12.  Close  Proprietor's  Account. 

13.  At  end  of  September  Close  all  Accounts. 

14.  Take  Last  Trial  Balance. 


Stevenson's  introductory  bookkeeping. 


83 


BUYINa  PEICE-LIST, 

SET  Y\ 

Description. 

Size  of  Package. 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

Teas. 

Japan, 

60-lb.  chests, 

.20 

.18 

.17 

.20i 

.\1\ 

.22 

.20 

.19 

.17 

.21 

Gunpowder, 

50-lb.  chests. 

.30 

.27 

.29 

.25 

.21i 

.25 

.24 

.23 

.27 

.26 

Young  Hyson, 

60-lb.  chests, 

.40 

.35 

.41 

.37 

.34i 

.30 

.33 

.31 

.36 

.35 

English  Breakfast, 

50-lb.  chests, 

.20 

.17 

.22 

.19 

.20 

.18 

.20 

.19 

.22 

.21 

Spices. 

Ginger, 

60-lb.  bales. 

.10 

.12 

.13 

.11 

.09 

.10 

.12 

.12^ 

.11 

.12 

Nutmegs, 

40-lb.  mats. 

.50 

.45 

.42 

.49 

.48 

.45 

.40 

.39 

.38 

•35 

Pepper, 

80-lb.  bags. 

.10 

.12 

.11 

.13 

.10 

.13 

.14 

.12 

.15 

.10^ 

Allspice, 

50-lb.  bags, 

.30 

.39 

.38 

.36 

•35 

.30 

.33 

.32 

.31  , 

.29 

Mixed, 

40-lb.  cartons. 

.15 

.16i 

.17 

.19 

.20 

.22 

.21 

.18 

.14 

.17 

Coffees. 

Mocha, 

140-lb.  bales. 

.20 

.21 

.22 

.23 

.22i 

.24 

.25 

.20 

.22 

.21 

Java, 

70-lb.  mats, 

.25 

.24 

.23 

.22 

.19 

.18i 

.17 

.22 

.19 

.18 

Rio, 

150-lb.  bags. 

.20 

.19 

.21 

.23 

.22 

.21 

.20 

.22 

.21 

.23 

Maracaibo, 

120-lb.  bags, 

.20 

.18i 

.23 

.19 

.21 

.20 

.21 

.23 

.24 

.20 

SELLINa  PRICE-LIST,  SET  F^ 


Description. 

Size  of  Package. 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

Teas. 

Japan, 

60-lb.  chests. 

.30 

.29 

.31 

.25 

.26 

.30 

.31 

.26 

.21 

.28 

Gunpowder, 

50-lb.  chests. 

.40 

.36 

.37 

.35 

.40 

.35 

.30 

.31 

.35 

.30 

Young  Hyson, 

60-lb.  chests. 

.50 

.48 

.45 

.40 

.43 

.40 

.42 

.44 

.43 

.40 

English  Breakfast, 

50-lb.  chests. 

.30 

.29 

.30 

.25 

.32 

.26 

.30 

.27 

.30 

.30 

Spiees* 

Ginger, 

60-lb.  bales. 

.15 

.16 

.18 

.17 

.20 

.16i 

.16 

.18 

.20 

.21 

Nutmegs, 

40-lb.  mats. 

.60 

.62 

.55 

.61 

.55 

.50 

.52 

.45 

.44 

.50 

Pepper, 

80-lb.  bags. 

.15 

.17 

.20 

.21 

.16 

.20 

.20 

.20^ 

.21 

.20 

Allspice, 

50-lb.  bags. 

.40 

.42 

.45 

.46 

.48 

.35 

.40 

.41 

.40 

.42 

Mixed, 

40-lb.  cartons. 

.20 

.22 

.25 

.27 

.30 

.25 

.30 

.26 

.25 

.27 

\                   Coffees. 
Mocha, 

140-lb.  bales. 

.30 

.29 

.35 

.31 

.32 

.30 

.35 

.30 

.29 

.30 

Java, 

70-lb.  mats. 

.35 

.30 

.40 

.37 

.31 

.24 

.25 

.30 

.27 

.26 

Rio, 

150-lb.  bags. 

.30 

.29 

.31 

.33 

.28 

.25 

.31 

.28 

.26 

.30 

'     Maracaibo, 

120-lb.  bags, 

.30 

.25 

.32 

.29 

.25 

.30 

.29 

.27 

.30 

.29 

84 

SALES  BOOK. 


STEVENSON  S  INTRODUCTORY  BOOKKEEPING. 


July  6,  189 


16 


20 


112 


30 


16 


22 


CV4 


18 


-6- 


—10- 


Joseph  Good : 

20  bags  Rio, 
10  bales  ginger, 
2  chests  Gunpowder, 

K.  A.  Mooney: 

2  chests  Gunpowder, 
5      "      Japan, 

4  bales  Mocha, 

D.  R.  Cook: 

5  bags  pepper, 
10  bales  Mocha, 

-^13- 

Frank  Worthington,  914  Garfield  St.: 

4  bales  ginger, 

3  mats  nutmegs, 

4  cartons  mixed, 

^22 

Joseph  Good: 

10  bags  pepper, 

5  "     Maracaibo, 

Merchandise  Cr., 

August  27. 

Cash  sales : 

10  bags  Maracaibo, 

10  chests  English  Breakfast, 

—29— 

Bills  Receivable,  C.  Burk's  note  at  30  ds.: 
10  bags  allspice, 
10  bales  Mocha, 

5  •*     ginger, 


.30 

.15 
.40 


.40 
.30 
.30 


.15 
.30 


.15 
.60 
.20 


.15 
.30 


.30 
.30 


.40 
.30 
.15 


900 
90 
40 


40 

90 

1G8 


60 
420 


36 
72 
32 


120 
180 


360 
150 


200 

420 

45 


1,030 


298 


480 


140 


300 


2,248 


510 


665 

1176 


STEVENSON  S   INTRODUCTORY    BOOKKEEPING. 


85 


INVOICE  BOOK. 


July 


July 


July 


189... 
2 


15 


Miles  Bros.,  1242  Monroe  St.,  K.  C. 
60  chests  Japan  tea, 
40      '•      Gunpowder, 
50  bales  ginger, 
30  mats  nutmegs, 
40  bags  pepper, 
50  cartons  mixed  spices, 
30  bales  Mocha, 
45  bags  Rio, 

McCroskey  &  Co. ,  Chicago : 

40  chests  Young  Hyson, 

20  bags  allspice, 

30  mats  Java, 

20  bags  Maracaibo, 

Miles  Bros.,  K.  C. : 

20  bags  allspice, 

20  mats  Maracaibo, 

20  chests  English  breakfast, 

20      "      Young  Hyson, 

Merchandise  Dr. 


20 

720 

30 

600 

10 

300 

50 

600 

10 

320 

15 

300 

20 

840 

20 

1,350 

.40 
.30 
.25 
.20 


.30 

.20 
.20 
.40 


"^^ 


960 
300 
525 

480 


300 

480 
200 
480 


5,030 


2,265 


1,460 


8,755 


86  Stevenson's  introductory  bookkeeping. 


MEMORANDA.— SET  ¥K 


July. 

1.  Student  began  a  wholesale  tea,  coffee  and  spice  business,  and  invested:  Cash  in  safe,  $15,200; 

R.  Adley's  note  at  60  days  from  May  4  last,  with  interest,  $240 ;  interest  to  date,  $2.32.  Wm. 
Homey  owes  you  on  account,  $260 ;  D.  Briley,  $325.  You  owe  G.  E.  Bouton,  on  a  note  at 
30  days  from  June  27  last,  $1,200,  with  interest ;  interest  to  this  date,  4  days,  80  cts.  Bought 
books  and  furniture  for  the  oflSce ;  pay  for  them  by  check,  $30.    Pay  July  rent  by  check,  $50. 

2.  Receive  from  Miles  Bros.,  1242  Monroe  St.,  Kansas  City,  goods  ordered  on  the  1st:   60  chests 

Japan  tea;  40  chests  Grunpowder;  50  bales  ginger;  30  mats  nutmegs;  40  bags  pepper;  50  car- 
tons mixed;  30  bales  Mocha;  45  bags  Rio.  Accept  their  draft  dated  July  1,  favor  them- 
selves, at  60  days  from  date,  for  $2,400;  remitted  balance  by  draft  on  Citizens  Bank,  Kansas 
City,  drawn  by  First  National  Bank,  Harvey  Lancaster,  cashier,  bought  by  check. 

5.  Sell  Joseph  Good:   20  bags  Rio  coffee;  10  bales  ginger;  2  chests  Gunpowder.     Draw  a  draft 

on  him  favor  yourself  at  10  days'  sight,  for  $520;  receive  his  check  on  Cannon's  Bank  for  the 
balance. 

6.  Sell  K.  A.  Mooney:   2  chests  Gunpowder;  5  chests  Japan;  4  bales  Mocha.     Receive  in  pay- 

ment a  check  on  Citizens  Bank  for  $200;  balance  on  account.  Receive  from  R.  Adley  cash 
for  his  note  of  May  4,  with  interest. 
8.  Draft  on  Joseph  Good  returned  accepted;  date  of  acceptance,  July  8.  Receive  from  Mc- 
Croskey  &  Co.,  Chicago:  40  chests  Young  Hyson;  20  bags  allspice;  30  mats  Java;  20  bags 
Maracaibo.  Give  in  payment  a  draft  on  First  National  Bank,  Chicago,  bought  at  Cannon's 
Bank  by  check,  $1,265;  balance  on  account. 

10.  Receive  from  Wm.  Horney  his  note  at  60  days  for  balance  of  his  account.  Sell  D.  R.  Cook, 
on  account:   5  bags  pepper;  10  bales  Mocha.     Stolen  from  the  cash  drawer,  $12. 

13.  Discount  Wm.  Horney's  note  of  10th  at  the  Metropolitan  Bank,  and  receive  cash  for  the  pro- 
ceeds. Sell  Frank  Worthington,  914  Garfield  St.:  4  bales  ginger;  3  mats  nutmeg;  4  car- 
tons mixed.  Receive  in  payment  his  note  in  your  favor,  with  interest,  payable  at  Citizens 
Bank  of  Rosedale,  at  30  days,  for  $96;  received  cash  for  the  balance. 

15.  Receive  from  Miles  Bros.:  20  bags  allspice;  20  mats  Maracaibo;  20  chests  English  Break- 
fast; 20  chests  Young  Hyson.  Give  in  payment  your  note,  without  interest,  at  30  days,  for 
$900;  a  draft  on  Metropolitan  Bank  for  $500;  balance  on  account. 

18.  Pay  your  note  of  June  27,  favor  of  G.  E.  Bouton,  less  discount,  by  check.  Receive  from  D. 
Briley  $220  to  apply  on  his  account.  ReceiV^e  check  on  Cannon's  Bank  from  Joseph  Good 
to  apply  on  his  acceptance  of  the  8th. 

20.  Pay  Miles  Bros.,  by  draft  on  Citizens  Bank,  Kansas  City,  bought  at  Cannon's  Bank  by  check, 
Eli  Snyder,  cashier,  $60. 

22.  Sell  Joseph  Good:  10  bags  pepper;  5  bags  Maracaibo.  Receive  in  payment  a  check  on 
Metropolitan  Bank  for  $180,  and  his  note  at  30  days  for  the  remainder. 

25.   Take  $75  from  the  drawer  for  private  use, 

27.   Find  $5  in  gold  on  the  floor.     K.  A.  Mooney  pays  $38  on  account. 

30.   Pay  C.  Hopkins's  salary  for  July,  as  clerk,  $45. 

Inventory. —  Mdse  at  cost,  $6,925,  per  price-list  No.  1.     Expense,  office  furniture,  etc.,  $65. 
Note. — The  teacher  will  supply  the  inventories  for  other  price-lists  from  Teachers'  Reference  Book. 


Stevenson's  introductory  bookkeeping.  87 

August. 

1.  Student  admits  T.  J.  Gage  as  partner.  He  is  to  invest  an  amount  equal  to  one-half  your  pres- 
ent worth  at  the  close  of  July,  and  is  to  share  one-third  of  the  losses  and  gains.  His  invest- 
ment is :  A  note  on  J.  Daniels,  Chanute,  at  60  days  from  July  4,  for  $1,200 ;  interest  to  date, 
28  days,  $5.60 ;  A.  B.  James  owes  him  on  account  $540.  He  owes  a  note  for  $300,  favor  of 
John  Bloom,  Palouse,  at  30  days  from  July  22,  with  interest ;  interest  to  date,  10  days,  50  cts.; 
he  owes  Jacob  Abraham,  256  Harrison  street,  on  account,  $240 ;  cash  deposited  in  Citizens  Bank 
to  make  his  investment  equal  to  one-half  your  present  worth.    Pay  August  rent  by  check,  $50. 

3.  Sell  K.  Hall,  Sedalia  :  10  bags  Maracaibo  coffee;  5  chests  English  Breakfast  tea  ;  4  chests  Gun- 
powder  tea.     Draw  a  draft  at  10  days'  sight  for  the  amount  of  the  bill. 

5.  Sell  D.  R.  Cook  :  5  mats  nutmeg  ;  6  chests  Young  Hyson  tea  ;  10  chests  Japan  tea.  Receive 
in  payment  a  check  on  Cannon's  Bank  for  $260  ;  balance  on  account.  R.  Hall  returns  the 
draft  accepted  ;  date  of  acceptance,  August  4. 

8.  Receive  from  Mortlock  &  Co.,  St.  Louis  :  40  mats  nutmeg ;  20  bales  Mocha  coffee ;  20  bags 
Maracaibo  coffee  ;  35  chests  English  Breakfast  tea.  Pay  for  the  same  by  check,  $390  ;  note 
at  60  days  for  the  balance,  with  interest.     Pay  drayman  for  delivering  the  goods,  75  cts. 

10.  Pay  draft  of  July  1,  favor  Miles  Bros.,  less  discount.  Sell  to  K.  T.  Bonnell,  Howard  :  10  car- 
tons mixed  spices;  15  chests  Japan  tea;  8  mats  nutmeg.  Receive  in  payment  a  draft  on  S.  T. 
Mason,  at  10  days  from  date,  for  $242;  a  check  on  Metropolitan  Bank  for  $150;  the  balance  on 
account. 

12.  Sell  James  Gillispie,  Moline,  on  account :  10  bales  Mocha  coffee  ;  8  bags  allspice  ;  5  bags 

Maracaibo.     Sell  T.  L.  Summers,  Toledo  :  5  chests  Young  Hyson  tea  ;  6  mats  Java  coffee. 
Inclose  a  draft  at  30  days  from  date  for  the  amount  of  the  bill. 

13.  Draft  on  T.  L.  Summers  returned,  accepted.      Cash  sales  for  the  day :    10  cartons  mixed 

spices  ;  20  mats  nutmeg  ;  10  bags  pepper. 
15.   Receive  from  B.  B.  Kaiser,  Kansas  City :  20  bags  Maracaibo  coffee ;  20  bales  Mocha  coffee ; 
20  bags  pepper.     Accept  a  draft  favor  of  himself  at  10  days'  sight  for  the  amount  of  the  bill. 
Frank  Worthington  pays  his  note  of  July  13,  with  interest,  by  check  on  Citizens  Bank. 

17.  Pay  note  favor  of  Miles  Bros.,  by  check. 

18.  Lose  on  the  street  $20  gold  piece.     Discount  T.  L.  Summers's  draft  of  August  13  at  the  bank, 

and  receive  net  proceeds  in  cash.     Cash  sales :  4  bags  Rio  coffee  ;  3  chests  Gunpowder  tea. 

20.  Sell  R.  Hall,  Sedalia :  10  bags  allspice ;  5  chests  Japan  tea ;  10  bales  ginger.  Receive  in  pay- 
ment a  check  on  the  Metropolitan  Bank  for  $80.  Balance  on  account.  Discount  our  note 
favor  Mortlock  &  Co.,  and  pay  proceeds  by  check. 

22.  Buy  chair  for  office,  by  check,  $10.  Sell  to  Fred  Davis,  Dayton  :  6  bales  Mocha  coffee  • 
5  chests  English  Breakfast  tea ;  4  bags  pepper.  Receive  in  payment  his  note  at  30  days, 
with  interest,  for  the  amount  of  the  bill.  S.  T.  Mason  pays  draft  of  August  10  by  check  on 
First  National  Bank. 

25.  Pay  our  note  favor  John  Bloom,  dated  July  22,  with  interest.  J.  Good  pays  his  note  of 
July  22,  with  interest. 

27.  Receive  from  McCroskey  &  Co.  :  10  mats  Java  coffee  ;  10  chests  Gunpowder  tea ;  20  chests 

Japan  tea.     Give  check  for  $175.     Balance  on  account.     Cash  sales  for  the  day :  10  bags 
Maracaibo  coffee  ;  10  chests  English  Breakfast  tea. 

28.  Pay  cash  for  B.  B.  Kaiser's  draft  of  August  15. 

29.  Sell  to  C.  Burk,  Oberlin  :  10  bags  allspice  ;  10  bales  Mocha  ;  5  bales  ginger.     Receive  in  pay- 

ment his  note  at  30  days,  with  interest  at  10  %,  for  the  amount  of  the  bill. 
31.    Cash  sales  for  the  day  :  20  chests  Gunpowder  tea  ;  30  chests  Young  Hyson  tea.     Pay  C.  Hop- 
kins's salary  for  August  by  check. 


Inventory.— Mdse.  on  hand  at  cost,  $6,270,  per  price-list  No.  1.     Expense,  office  furni- 
ture, etc.,  $75. 


88  Stevenson's  introductory  bookkeeping. 

Septemher. 

1.  Pay  September  rent  by  check,  $50.    Receive  from    D.  Hamer  &  Co.,  St.  Louis:   20  cacrtons 

mixed  spices;  20  bags  allspice  ;  15  bales  ginger  ;  10  bales  Mocha  coffee  ;  20  bags  Rio  coffee. 
Accept  their  draft  at  10  days  from  date,  Aug.  31,  for  the  amount  of  the  bill.  Cash  sales  for 
the  day  :  10  cartons  mixed  spices  ;  10  mats  Java  coffee  ;  10  bags  Rio  coffee  ;  10  bags  Mara- 
caibo  coffee. 

2.  Receive  from  D.  R.  Cook,  to  apply  on  account,  $40.    Sell  to  John  Raymond  :  10  bales  Mocha  cof- 

fee ;  10  mats  Java  coffee ;  8  bales  ginger ;  receive  cash  in  payment,  $430  ;  balance  on  ac- 
count. 

4.  Sell  W.  T.  Grover,  on  account :   10  bags  pepper  ;  10  chests  Japan  tea  ;  5  chests  Young  Hyson 

tea.     Receive  from  John  Raymond,  to  apply  on  account,  $330. 

5.  J.  Daniels  pays  his  note  of  July  4,  with  interest. 

6.  Sell  F.  L.  Conrad :   10  bales  Mocha  coffee  ;  8  bales  ginger  ;  5  mats  nutmeg ;  6  bags  Mara- 

caibo  coffee.  Draw  a  draft  on  him  for  the  amount  of  the  bill,  at  10  days'  sight.  Cash 
sales  :   10  chests  English  Breakfast  tea  ;  8  chests  Japan  tea. 

8.  Receive  from  McCroskey  &  Co. :   10  chests  Young  Hyson  tea  ;  10  chests  Gunpowder  tea  ;  12 

bags  allspice  ;  10  bags  Rio  coffee.     Pay  for  the  same  by  check  for  $600  ;  balance  on  account. 

9.  P.  L.  Conrad  returns  draft ;   date  of  acceptance,  Sept.  8.     Cash  sales  for  the  day  :   8  bags 

Maracaibo  coffee  ;  5  bags  pepper  ;  6  mats  nutmeg.     The  $20  gold  piece  lost  on  August  18  is 

returned  by  the  boy  who  found  it.     Pay  50  cts.  for  the  service. 
10.   Draw  a  draft  at  10  days  from  date  on  W.  T.  Grover  for  the  balance  of  his  account.     Receive 

cash  from  James  Gillispie,  to  apply  on  his  account,  $245.     Cash  sales :   10  chests  English 

Breakfast  tea  ;  6  bags  pepper  ;  5  bales  Mocha  coffee. 
12.   Pay  draft  of  August  31,  favor  D.  Hamer  &  Co.,  by  check.      W.  T.  Grover  returns  draft  ac- 
cepted.    Sell  T.  L.  Summers  :  10  bags  Rio  coffee  ;  5  cartons  mixed  spices  ;  3  bags  allspice. 

Receive  cash,  $142  ;  balance  on  account. 
14.    Sell  F.  D.  Baker,  Elmdale  :  10  chests  Gunpowder  tea ;  5  chests  Young  Hyson  tea ;  4  mats 

nutmegs.     Receive  in  payment  his  note  at  30  days,  with  interest,  for  the  amount  of  the  bill. 

Cash  sales  :   5  mats  Java  ;  4  cartons  mixed  spices. 
16.    Sell  K.  A.  Mooney,  on  account :  5  chests  English  Breakfast  tea ;  1 2  bags  allspice  ;  4  bags 

Maracaibo  coffee.     Discount  C.  Burk's  note  of  August  29  at  the  Citizens  Bank,  and  receive 

cash  for  the  net  proceeds.     Cash  sales  :  5  chests  Gunpowder  tea  ;  5  bales  ginger. 

18.  Receive  from  C.  O.  Wendling,  St.  Louis:  10  bales  Mocha  coffee;  30  bales  ginger;  15  bags 

Rio  coffee.  Accept  a  draft  favor  himself,  30  days'  sight,  for  the  amount  of  the  bill.  D.  R. 
Cook  paid  $125  on  account.     Send  to  McCroskey  &  Co.,  to  apply  on  account,  $450  by  check. 

19.  Sell  Jacob  Abraham  :   10  bags  Rio  coffee  ;   12  chests  Japan  tea ;   5  chests  Young  Hyson. 

Receive  a  check  on  Metropolitan  Bank  for  $410  ;   balance  on  account.     Cash  sales  :   4  bales 

ginger ;  3  chests  English  Breakfast  tea.     A.  B.  James  pays  $360  on  account. 
21.   T.  L.  Conrad  pays  his  draft  of  September  9  by  check  on  Cannon's  Bank.      Sell  Jacob  Good, 

on  account :   5  chests  Gunpowder  tea  ;   10  bags  allspice ;  5  mats  nutmeg.     Receive  from 

James  Gillispie,  to  apply  on  account,  $235. 
23.   W.  T.  Grover  pays  his  draft  of  September  10  by  check  on  First  National  Bank.     Cash  sales  : 

3  bales  ginger  ;  4  chests  English  Breakfast  tea. 
26.    Sell  G.  W.  Swanson  on  his  note  at  30  days,  with  interest :  8  chests  Japan  tea  ;  3  bags  pepper ; 

8  bags  Maracaibo  coffee. 
30.   Receive  from  James  Gillispie,  to  apply  on  his  account,  $75.     Cash  sales  :   10  bags  allspice  ;  2 

mats  Java  coffee.     Pay  C.  Hopkins's  salary  for  the  month,  $45. 

Inventoky. — Mdse.  inventory,  per  price-list  No.  1,  $3,664.50.     Expense,  office  furniture,  etc, 
$60. 


SET  F 


TEA,  COFFEE  AND  SPICE  BUSINESS. 


JULY  AND  AUGUST. 


Objects. — Same  as  Set  F^,  with  the  introduction  of  "bank  qolumns"  in  the  Cash  Book. 


Instructions. — The  second  column  on  the  left  page  of  Cash  Book  is  for  all  amounts  depos- 
ited in  the  bank,  and  in  the  second  column  on  the  right  page  of  Cash  Book  will  be  entered  the 
amounts  of  all  checks  drawn.  The  amount  of  cash  "  on  hand,"  i.  e.,  available,  includes  the  amount 
in  the  bank,  and  the  difference  between  the  amount  of  cash  "  on  hand  "  and  the  amount  in  the  bank 
may  be  termed  the  cash  "  in  hand."  This  plan  is  sometimes  followed  by  bookkeepers  who  desire 
to  keep  their  cash  balance  and  bank  balance  constantly  before  them. 

Notice  the  illustration,  and  be  sure  to  understand  the  foregoing  directions. 


To  catch  Dame  Fortune's  golden  smile, 

Assiduous  wait  upon  her ; 
And  gather  gear  by  every  wile 

That 's  justified  by  Honor : 
Not  for  to  hide  it  in  a  hedge, 

Nor  for  a  train  attendant; 
But  for  the  glorious  privilege 

Of  being  independent. 

—  liobert  Burns, 


90 


STEVENSON  S   INTRODUCTORY    BOOKKEEPING. 


BUYINa  PRICE-LIST.— SUPPLEMENT AEY  SET  ¥\ 


Desckiption. 

Quantity. 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

Teas. 

Japan, 

70-lb.  chest, 

AO 

.39 

A8y2 

•39^ 

.41 

■mi 

.43 

•^Wz 

.42 

.38 

Basket-fired, 

65-lb.  chest, 

.60 

.61 

•Qovz 

.59 

59^ 

.62 

.603^ 

my^ 

61^ 

my^ 

Green, 

50-lb.  chest. 

.50 

.5oy2 

.53 

AQVz 

.51 

.5iy2 

.49 

.48 

Am 

.52 

Dust, 

100-lb.  box. 

.08 

■OlVz 

.07 

.OSVz 

.09 

.10 

•09y2 

•^Yz 

my^ 

.08 

Coffees. 

Mocha, 

75-lb.  bag, 

.23 

•21 

.233^ 

.22 

.221^ 

•23>^ 

.23 

.24 

•24>^ 

.25 

Lion, 

100-lb.  box, 

.18 

.17 

■im 

■im 

.193^ 

.16^ 

.15 

.20 

.19 

.17 

Eoasted  bulk. 

150-lb.  mat. 

.20 

.19)^ 

.18 

.17 

.21 

•21>^ 

.2oy2 

.19 

.18>^ 

.17 

Unroasted, 

80-lb.  sack. 

.U 

.13 

.12 

.I2y2 

■im 

.15 

.163^ 

.1^2 

.11 

.10 

Spices, 

Pepper, 

40-lb.  chest. 

.10 

.09 

.09^ 

my^ 

.11 

.12 

.133^ 

•11^ 

.12)^ 

.08>^ 

Cinnamon, 

25-lb.  bag, 

.20 

■^2 

.18 

.isyz 

•173^ 

.19>^ 

.21 

.223^ 

.19 

.22 

Allspice, 

10-lb.  bag. 

.20 

.IQVz 

.21 

.17 

■im 

■20>^ 

.19 

.22 

•213-^ 

.18 

Ginger, 

50-lb.  bale, 

.15 

.16 

.im 

.15)^ 

.13^ 

.13 

.14 

.17 

.15>^ 

.16 

Mustard, 

25-lb.  bale. 

.05 

MVz 

.03 

■05y2 

.06 

.07 

■oiyz 

.03^ 

.04 

.06^ 

Mace, 

10-lb.  bale, 

.15 

.i5y2 

.14 

.13 

.isy^ 

.i6y2 

.i2y2 

.16 

.17 

.16>^ 

CASH  BOOK  WITH  BANK  COLUMNS. 


CASH 

Cash  Dr. 

Bank  Dr. 

189.... 

July 

1 

In  First  National  Bank, 

Student, 

2,500 

1,500 

4 

On  account, 

John  Anderson, 

150 

5 

Bill  to  Van  Couver  &  Co., 

Mdse., 

S- 

1,950 

5 

Dep., 

1,000 

8 

Balance  on  account, 

John  Anderson, 

100 

9 

Dep., 

3,355 

S8S6 

11 

Bill  to  Van  Couver  &  Co., 

Mdse., 

s— 

2,947 

50 

11 

In  full  of  account. 

R.  Bell, 

216 

25 

7863 

76 

Balances, 

7,863 

75 

5,855 

July 

11 

4,518 

75 

3,035 

STEVENSON  S   INTRODUCTORY    BOOKKEEPING. 


91 


SELLING  PEICE-LIST.— SUPPLEMENTARY  SET  Fl 


Description. 

Quantity. 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

Teas. 

Japan, 

70-lb.  chest. 

.50 

.51 

.47 

AQ% 

.50 

.49 

.48 

•48% 

•50% 

.52 

Basket-fired, 

65-lb.  chest, 

.75 

.74 

•72^ 

.ibV^ 

.73 

•74% 

.76 

•76% 

.75 

•73% 

Green, 

50-lb.  chest. 

.60 

.my^ 

.64 

■Goy2 

.6iy2 

•60% 

•64% 

.59 

.57 

.59% 

Dust, 

100-lb.  box. 

.10 

•113^ 

.12 

.13 

.my^ 

.09 

.12% 

.11 

.13 

.13% 

Coffees. 

Mocha, 

75-lb.  bag. 

.30 

•33>^ 

.32 

.31 

.3oy2 

.29 

•31% 

.32% 

•29% 

.28 

Lion, 

100-lb.  box. 

.20 

.21 

.18>^ 

.20^ 

.19 

•21% 

.19% 

.18% 

.22 

.23 

Roasted  bulk, 

150-lb.  mat. 

.25 

.24 

.26 

.23 

•24>^ 

.25 

•25% 

•26% 

.27 

•23% 

Unroasted, 

80-lb.  sack. 

.18 

.20 

.19 

.21 

.i8y2 

.20% 

•19% 

.21% 

.17 

.16 

Spices. 

Pepper, 

40-lb.  chest, 

.20 

.19 

.22>^ 

.20^ 

.23 

.24 

•18% 

•19% 

.18 

.21 

Cinnamon, 

25-lb.  bag, 

.25 

.24 

.26J^ 

•25>^ 

.20 

•24% 

.21 

•21% 

.27 

.23 

Allspice, 

10-lb.  bale. 

.30 

.273^ 

.29 

.28 

.283^ 

.29% 

.31 

•33% 

.32 

•29% 

Ginger, 

50-lb.  bale, 

.25 

.24^ 

.23 

.253^ 

.26 

.27 

.30 

•27% 

•23% 

.24 

Mustard, 

25-lb.  bale. 

.10 

.09 

11 

.ioy2 

•11% 

•09% 

.08 

•07% 

.12 

.13 

Mace, 

10-lb.  bale, 

.20 

.181^ 

.19 

.21 

■mi 

•19% 

•17% 

•20% 

.18 

.17 

BOOK. 


Cash  Cr. 


Bank  Cr. 


189.... 
July 


10 


Invoice,  A.  L.  &  Co.,         ck.  1, 

Sight-draft, 

Bill  this  date,  ck.  2, 

Safe 

On  invoice,  A.  L.,  ck.  3, 

Curtains,  etc.,  for  store, 


Mdse., 

Steele  &  Co., 

Furniture  and  fixtures, 

Furniture  and  fixtures, 

Mdse., 

Furniture  and  fixtures 

Balances, 


I— 


I— 


780 

250 

40 

250 

2,000 

25 

3345 

4,518 


7,863 


75 


75 


780 


40 


2,000 

88S0 


3,035 


5,855 


92  SIEVENSON's    INTKODUCTOBY   BOOKKEEPIUa. 


SET  F\ 

Note. — The  amounts  below  will  be  largely  changed  when  using  any  other  price-list  than  No.  1. 


MEMORANDA. 


July. 

1.  Student  commenced  a  wholesale  tea,  coffee  and  spice  business  this  day,  with  the  following 
resources  and  liabilities: 

RESOURCES. 

Store  and  lot,  corner  Main  street  and  Sixth  avenue,  valued  at  $2,500;  cash  on  deposit  in  First 
National  Bank,  $1,500 ;  account  of  John  Anderson,  Harlem,  $250 ;  account  of  Cross  & 
Shaw,  Portis,  $500 ;   note  of  J.  W.  Williams,  at  three  months  from  May  15, 


LIABILITIES. 

Steele  &  Co.,  on  account,  $1,250 ;  note  favor  P.  W.  Samuels,  due  July  23, 

2.  Bought  of  A.  Linn  &  Co.:  20  chests  Japan  tea,  $560  ;   10  boxes  Lion  coffee,  $180  ;  10  chests 

pepper,  $40.     Paid  for  same  by  check. 

3.  Sold  R.  Bell,  on  account :  5  chests  pepper,  $40  ;  6  boxes  Lion  coffee,  $120  ;  10  chests  Japan 

tea,  $350. 

4.  Received  cash  of  John  Anderson,  to  apply  on  account,  $150.     Bought  of  Smith  Bros.,  on  ac- 

count, 100  chests  basket-j&red  tea,  $3,900.  Drew  sight-draft  on  R.  Bell  for  $500,  and  sent  to 
Steele  &  Co.  to  apply  on  account. 

5.  Sold  Van  Couver  &  Co.,  for  cash,  40  chests  basket-fired  tea,  $1,950.      Deposited  in   bank, 

$1,000.     Paid  Steele  &  Co.'s  sight-draft,  $250. 

6.  Bought  office  desk  and  fixtures,  $40.     Grave  check  in  payment.     Bought  of  Utica  Spice  Com- 

pany :  25  chests  pepper,  $100  ;  10  bags  cinnamon,  $50  ;  1 0  bales  ginger,  $75  ;  5  bales  mace, 
$7.50.     Accepted  their  draft  at  20  days  for  amount  of  bill. 

8.  Sold  D.  T.  Short,  on  account :  20  chests  pepper,  $160;  10  bales  ginger,  $125.    Received  of  John 

Anderson  $100  to  balance  his  account.     Bought  safe  for  office,  $250,  for  cash. 

9.  Accepted  Smith  Bros.'  draft,  favor  A.  B.  Blakner,  for  $1,000,  at  10  days'  sight.     Deposited  in 

bank  all  cash  in  hand  except  $25.  Bought  of  A.  Linn:  100  chests  green  tea,  $2,500;  50  boxes 
Lion  coffee,  $900  ;  50  bales  mustard,  $62.50  ;  15  bags  allspice,  $30.  In  payment,  gave  check 
for  $2,000  ;  balance  on  account. 

10.  Sold  R.  Bell,  on  account :   4  boxes  Lion  coffee,  $80  ;   5  chests  pepper,  $40  ;  5  bags  cinnamon, 

$31.25  ;  10  bales  allspice,  $30  ;  40  bales  mustard,  $100.  Received  of  Cross  &  Shaw  note  at 
30  days  for  amount  of  their  account.     Bought  curtains  and  fixtures  for  store,  for  cash,  S§25. 

11.  Sold  Van  Couver  &  Co.,  for  cash,  and  deposited  amount  received :  50  chests  basket-fired  tea, 

$2,437.50;  25  boxes  Lion  coffee,  $500;  5  bales  mace,  $10.  Bought  of  Steele  &  Co.,  on  ac- 
count :  100  boxes  dust  tea,  $800 ;  50  bags  Mocha,  $862.50 ;  40  sacks  unroasted  coffee,  $448 ; 
50  bales  ginger,  $375  ;  10  bales  mace,  $15.     Received  of  R.  Bell  bank  draft  in  full  of  account. 

12.  Sold  for  cash,  50  boxes  dust  tea,  $500 ;  20  sacks  unroasted  coffee,  $288 ;  20  bales  mustard,  $50. 

Received  of  D.  T.  Short  $285,  in  full  of  account.  Sent  A.  Linn  check  for  $500,  to  apply  on 
account. 

13.  Sold  S.  Hammond:    20  boxes  Lion  coffee,  $400;  5  chests  green  tea,  $150;  25  bales  ginger, 

$312.50.  Received  bank  draft  for  $510 ;  balance  on  account.  Withdrew  for  private  use,  by 
check,  $100. 


Stevenson's  introductory  bookkeeping.  93 

15.  Accepted  Smith  Bros.'  draft,  favor  of  themselves,  for  $2,400,  at  20  days'  sight.     Bought  of 

Steele  &  Co.,  on  account :  100  mats  roasted  bulk  coffee,  $3,000  ;  100  chests  Japan  tea,  $2,800  ; 
20  boxes  Lion  coffee,  $360.  Sold  K.  Bell,  on  account :  10  chests  Japan,  $350  ;  20  bags  Mocha, 
$450  ;  40  boxes  dust,  $400. 

16.  Sold  Cross  &  Shaw,  for  cash:  10  chests  Japan,  $350;   10  boxes  Lion  coffee,  $200;   10  bags 

Mocha,  $225;  20  chests  green  tea,  $600.  Drew  draft  on  R.  Bell  for  $1,000,  at  30  days,  favor 
myself,  and'discounted  at  bank  at  6%.     Deposited  proceeds. 

17.  Discounted  Cross  &  Shaw's  note  of  10th  inst.  at  bank,  depositing  proceeds.     Bought  of  A. 

Linn:   40  chests  basket-fired  tea,  $1,560;  100  boxes  dust  tea,  $800;  30  bags  Mocha,  $517.50; 

50  boxes  Lion  coffee,  $900;  10  chests  pepper,  $40;  20  bags  cinnamon,  $100;  20  bags  allspice, 

$10.     Gave  check  for  $2,500;  balance  on  account.     Paid  Smith  Bros.,  in  full  of  their  account, 

by  check. 
19.   Paid  Smith  Bros.'  draft  favor  A.  B.  Blakner,  accepted  on  the  9th  inst.,  by  selling  him  (Blak- 

ner)  the  following  bill  of  goods,  and  paying  the  balance  in  cash:   10  bales  mace,  $20;  10  bales 

ginger,  $125;  10  chests  green  tea,  $300. 
23.    Deposited  in  bank  all  cash  on  hand  except  $10  for  cash  drawer.     Sold  John  Anderson,  for 

cash:   10  sacks  unroasted  coffee,  $144;  20  bags  cinnamon,  $125;  10  boxes  dust  tea,  $100;  20 

bales  mustard,  $50;  50  mats  roasted  coffee,  bulk,  $1,875. 

23.  Paid  note  favor  P.  W.  Samuels  by  check.     Paid  A.  Linn,  on  account,  cash,  $1,500. 

24.  Received  of  S.  Hammond  cash  in  full  of  account.    Paid  Steele  &  Co.,  by  check,  $2,000.     Sold 

D.  T.  Short,  for  his  note  at  30  days:  50  chests  Japan  tea,  $1,750;  15  chests  pepper,  $120;  25 
mats  roasted  bulk  coffee,  $937.50:  50  chests  basket-fired  tea,  $2,437.50. 

25.  Withdrew  for  private  use,  $100.     Sold  for  cash:   40  chests  Japan  tea,  $1,400;   10  sacks  un- 

roasted coffee,  $144;  15  bales  ginger,  $187.50;  50  boxes  Lion  coffee,  $1,000;  20  chests  green 
tea,  $600. 

26.  Paid  draft  favor  Utica  Spice  Co.,  in  cash.     Bought  of  Smith  Bros.,  on  account :   10  chests 

Japan  tea,  $280 ;  10  chests  basket-fired  tea,  $390  ;  10  chests  green  tea,  $250  ;  10  sacks  un- 
roasted coffee,  $112  ;  10  chests  pepper,  $40 ;  10  bags  ginger,  $75  ;  10  bales  mace,  $15.  Paid 
A.  Linn  cash  in  full  of  account. 

29.  Paid  Steele  &  Co.'s  sight-draft  for  $2,000,  favor  W.  L.  Zimmerman,  in  cash.     Accepted  Smith 

Bros.'  draft  at  30  days  for  amount  of  bill  of  26th  inst.  Sold  R.  Bell,  on  account :  50  bags 
Mocha  coffee,  $1,125  ;  100  boxes  dust  tea,  $1,000  ;  10  chests  pepper,  $80. 

30.  Sold  S.  Hammond,  on  account :   25  mats  roasted  bulk  coffee,  $937.50 ;  10  chests  basket-fired 

tea,  $487.50  ;  10  chests  green  tea,  $300. 

31.  Paid  John  Goheen,  clerk,  salary  for  month,  $50,  by  check.     Paid  freight  bills  for  month,  $55.40. 
(Note. — Debit  Merchandise  with  freight  charges.) 

Inventory. 
Merchandise  (valued  at  cost  price  ) :  Merchandise  —  continued : 


10  chests  Japan  tea. 

10  sacks  unroasted  coffee. 

5  bags  allspice. 
20  bales  mustard. 
Expense  :   Office  safe,  $200;  desk. 


15  boxes  Lion  coffee. 

5  bags  cinnamon. 
10  bales  ginger. 
10  bales  mace. 
Real  estate  :  Store  and  lot,  $2,500. 


August, 

1.  D.  A.  Miller  is  this  day  admitted  as  an  equal  partner,  the  firm  name  to  be  Student  &  Miller. 

He  invests  as  follows:  Geo.  Alford's  note,  favor  Miller,  at  30  days,  dated  July  10,  $500;  J.  W. 
Osborn  owes  him,  on  account,  $1,000;  Miller  owes  John  Dewey,  on  account,  $500.  He  invests 
cash  to  make  his  investment  equal  Student's  present  worth. 

2.  Transferred  my  credit  in  bank  to  credit  of  Student  &  Miller  and  deposited  $1,000.     Bought  of 

Steele  &  Co.,  on  account:  50  chests  Japan  tea;  100  boxes  dust  tea;  25  bags  Mocha  coffee; 
100  boxes  Lion  coffee;  40  mats  roasted  bulk  coffee.  Sold  for  cash  :  50  boxes  Lion  coffee;  10 
sacks  unroasted  coffee. 

3.  Drew  sight-draft  on  R.  Bell  for  $1,500,  and  sent  to  him  to-day.  (Memorandum  only.)    Each  of 

the  partners  withdrew  for  private  use  $300.  by  check. 


94  Stevenson's  introductory  bookkeeping. 

5.  K.  Bell  has  paid  draft  sent  him  on  the  3d  by  check,  which  we  deposited  in  bank.     Sold  D.  T. 

Short,  on  account :   20  bags  Mocha ;  50  chests  Japan  tea ;  5  bags  cinnamon ;  5  bales  mace. 

6.  Bought  of  A.  Linn:   50  chests  basket-fired  tea;  30  chests  green  tea;  15  sacks  unroasted  coffee; 

25  chests  pepper;  10  bags  cinnamon;  20  bales  mace.  Gave  check  for  $500;  balance  on  ac- 
count.    Bought  for  cash  new  set  office  books,  $25. 

7.  Keceived  of  S.  Hammond  cash  in  full  of  account.     Sold  W.  L.  Zimmerman,  for  cash:   5  chests 

Japan  tea;  10  bales  mace;  10  bales  mustard;  5  bags  allspice;  25  boxes  dust  tea.     Paid  Ar- 
nold &  Co.  for  building  addition  to  store,  check,  $1,000. 
(Debit  Real  Estate.) 
Paid  Smith  Bros.'  draft,  accepted  on  the  15th  ult.,  by  check;  face  of  draft,  $2,400. 

8.  Bought  of  Smith  Bros.,  on  account:   20  chests  Japan  tea;  20  bags  Mocha  coffee;  15  bales  mus- 

tard; 25  bags  allspice;  25  sacks  unroasted  coffee;  20  chests  green  tea.  Received  by  to-day's 
mail  from  A.  Linn  a  draft  at  30  days'  sight,  to  balance  account,  v/hich  we  accepted  and  re- 
turned. 

10.  Accepted  Steele  &  Co.'s  draft,  favor  themselves,  for  $1,000,  at  30  days'  sight. 

12.  Received  payment  of  Geo.  Alford's  note  in  cash.  Sold  for  cash  :  25  chests  basket-fired  tea ; 
20  mats  roasted  bulk  coffee  ;  15  chests  pepper  ;  10  bales  mustard  ;  10  bags  ginger.  Depos- 
ited in  bank  all  cash  in  hand. 

14.  Bought  of  A.  Linn  :   40  bales  ginger  ;  10  bags  mustard  ;  25  bags  Mocha  coffee  ;  15  bales  mace. 

Gave  check  for  $500  ;  balance  on  account. 

15.  Received  from  J.  W.  Williams  bank  draft  for  $200,  in  payment  of  his  note  of  May  15.     Drew 

draft  for  30  days  on  R.  Bell  for  amount  due  us,  and  discounted  at  bank,  leaving  proceeds  to 
our  credit.     Paid  Steele  &  Co.'s  sight-draft,  favor  Joe  Rice,  for  $4,000,  by  check. 

16.  Sold  Cross  &  Shaw,  on  account :  50  boxes  dust  tea  ;  25  sacks  unroasted  coffee  ;  25  bales  mace  ; 

20  bales  ginger  ;  10  bags  cinnamon  ;  25  bags  Mocha  coffee.  Drew  sight-draft  on  D.  T.  Short 
for  amount  due  us,  and  sent  to  Steele  &  Co.  to  apply  on  account. 

17.  Accepted  Smith  Bros.'  draft  at  30  days,  dated  August  16,  favor  Hamilton  Importing  Company, 

for  $600.  Sold  R.  Bell,  on  account :  5  chests  green  tea  ;  20  mats  roasted  bulk  coffee  ;  10 
chests  pepper  ;  10  boxes  dust  tea  ;  10  bags  cinnamon.  Bought  water-cooler  for  use  in  store, 
paying  $10  cash. 

19.  Bought  of  A.  Linn,  on  account :  30  chests  pepper  ;  20  bales  mace  ;  50  chests  basket-fired  tea  ; 
25  bags  allspice.  Sold  for  cash  :  15  bags  Mocha  coffee  ;  20  sacks  unroasted  coffee  ;  25  chests 
basket-fired  tea, 

21.  Deposited  in  bank  all  cash  in    hand.     Sold  W.  L.  Zimmerman  :  50  chests  basket-fired  tea  ; 

50  chests  green  tea  ;  10  bags  Mocha  coffee  ;  45  sacks  unroasted  coffee  ;  60  bales  allspice  ;  10 
bales  mace  ;  25  boxes  Lion  coffee.  Received  cash,  $1,000  ;  for  balance,  he  accepts  a  30-day 
draft,  favor  Smith  Bros. 

22.  Cross  &  Shaw,  having  failed  in  business,  have  compromised  with  their  creditors  at  60  cts.  on 

a  dollar.     Received  from  them  cash  to  balance  their  account  on  this  basis. 

( This  entry  may  he  made  by  debiting  Cash  and  Loss  and  Gain,  and  crediting  Cross  &  Shaw  for  the  amount  due  us, 
or  by  debiting  Cash  and  crediting  Cross  &  Shaw  for  the  amount  received,  and  then  posting  and  closing 
Cross  &  Shaw's  account  into  Loss  and  Gain.     Use  the  latter  method.) 

24.   Sold  for  cash  :   15  boxes  dust  tea  ;  25  chests  basket-fired  tea  ;  25  boxes  Lion  coffee  ;  10  bales 

mace  ;  20  bales  ginger.     Paid  Smith  Bros.,  by  check,  $500.     Accepted  A.  Linn's  60-day  draft 

for  $250. 
26.   Sold  S.  Hammond,  on  account :  25  chests  Japan  tea.     Bought  of  Steele  &  Co.,  on  account :  50 
■    chests  basket-fired  tea  ;  25  chests  green  tea  ;  50  boxes  dust  tea  ;  20  bags  Mocha  coffee  ;  20 

chests  pepper  ;  25  bales  mustard  ;  50  mats  roasted  bulk  coffee. 
26.   Received  of  D.  T.  Short,  in  payment  of  his  note  due  to-day,  bank  draft,  which  was  deposited 

in  bank  by  us.     Paid  Steele  &  Co.,  by  check,  $1,000  on  account. 


STEVENSON  S  INTRODUCTORY  BOOKKEEPING. 


95 


2S.  Sold  R.  Bell,  on  account :  25  boxes  dust  tea  ;  25  mats  roasted  bulk  coffee  ;  10  chests  pepper  ; 
10  bales  mustard.  Bought  of  Smith  Bros.:  50  sacks  unroasted  coffee;  25  bags  cinnamon;  50 
bales  ginger;  50  chests  Japan  tea.     Gave  in  payment  check  for  $1,000;  balance  on  account. 

30.  Paid  ice  bill  for  July  and  August  in  cash,  $5.     Sold  S.  Hammond,  on  account :  50  chests  Ja- 

pan tea ;   50  sacks  unroasted  coffee  ;   20  bags  cinnamon  ;   25  bales  ginger.     Received  of  R. 
Bell,  to  apply  on  account,  $500.     Paid  Steele  &  Co.  on  account,  by  check,  $5,000. 

31.  Paid  freight  bills  for  month,  $65,  in  cash.     Deposited  in  bank  all  cash  in  hand.     Paid  John 

Goheen,  clerk,  salary  for  month,  by  check,  $60.     Sold  office  desk  and  fixtures  for  $20.    (Oredil 
Expense.) 

Inventory. — August  31,  189 


Merchandise  (valued  at  selling  price) : 

Basket-fired  tea,     .     .     .  50  chests. 

Green  tea, 25  chests. 

Dust  tea, 25  chests. 

Mocha  coffee,     ....  20  bags. 

Mustard 15  bales. 

Roasted  bulk  coffee;  .     .  25  mats. 


Merchandise  —  continued : 

Pepper, 10  chests. 

Cinnamon, 5  bags. 

Ginger, 25  bales. 

Expense  :  Safe,  valued  at  $200. 
Real  estate  :   Store  and  lot,  valued  at 

$3,500. 


QUESTIONS. 


1.  Explain  the  objects  of  Sets  F. 

2.  Explain  the  use  of  the  Cash  Book.  ' 

3.  Explain  the  keeping  of  a  Sales  Book. 

4.  Describe  the  Invoice  Book. 

5.  How  is  the  posting  done  from  (a)  Cash  Book  ?    (6)  Sales  Book  ?    (c)  Invoice  Book  ? 

6.  Explain  the  checking  when  there  are  four  books  of  original  entry. 

7.  Write  any  of  the  business  forms  that  your  teacher  may  call  for. 

8.  Explain  the  keeping  and  use  of  "bank  columns  "  in  a  Cash  Book. 

9.  The  columns  of  a  Cash  Book  with  bank  columns  stand  as  follows:  Cash  Dr.,  $700  ;  Bank  Dr.,  $600;  Cash  Cr., 

$200;  Bank  Cr.,  $200.    How  much  cash  is  on  hand  ?    Ans.  $500.    How  much  cash  is  in  bank?    Ans.  $400. 
How  much  cash  is  "  in  hand  "  ?    Ans.  $100. 
10.   If  the  columns  stood  as  follows  :  Cash  Dr.,  $1,000 ;  Bank  Dr.,  $900 ;  Cash  Cr.,  $950;  Bank  Cr.,  $920  ?    Explain. 


SET   G\ 


OCTOBER. 


Object  . —  The  use  of  Cash  Book,  sometimes  called  a  Cash- Journal,  as  the  only  book  of  orig- 
inal entry.  This  is  a  most  excellent  book  for  use  in  connection  with  the  Ledger  by  an  individual 
doing  a  business  of  very  small  extent,  as  it  possesses  the  elements  of  completeness  and  brevity. 
It  is  used  in  some  targe  business  houses.  For  students  and  teachers  this  book  has  no  superior. 
The  posting  can  be  done  once  a  year,  during  vacation,  and  if  the  information  given  by  all  the  ac- 
counts is  not  desired,  part  may  be  omitted  and  only  such  accounts  posted  as  desired. 


Instructions. — This  book  differs  from  the  ordinary  Cash  Book  only  in  that  any  transaction, 
whether  involving  cash  or  not,  may  be  disposed  of  in  it.  Accounts  to  be  debited  appear  on  the 
credit  side,  and  accounts  to  be  credited  appear  on  the  debit  side.  If  a  transaction  does  not  involve 
cash,  the  sides  are  increased  equally  and  the  cash  balance  undisturbed. 

To  test  the  accuracy  of  an  entry  in  a  Cash- Journal,  make  the  old  Journal  entry,  and  see  that 
all  the  accounts  to  be  credited  are  named  on  the  debit  side  of  the  Cash-Journal,  excepting  Cash, 
and  all  accounts  to  be  debited  are  on  the  credit  side,  excepting  Cash.  Cash  takes  care  of  itself  in  a 
Cash  Book  or  Cash-Journal. 

This  is  an  age  of  discounts.  Prompt  payments  bring  reductions.  Usually  the  terms  of  dis- 
counts are  printed  on  the  bills;  as,  10/10,  5/20,  n/30,  etc.;  meaning  10%  ofP  if  paid  in  10  days,  5% 
off  if  paid  in  20  days,  nothing  off  if  paid  in  30  days.  Some  firms  consider  payment  within  30  days 
to  be  a  cash  payment,  and  give  a  discount  accordingly.  Mdse.  Discount  account  must  be  closed 
into  Mdse.  account  before  Mdse.  is  closed,  and  not  into  Loss  and  Gain. 


Mankitid  is  of  four  classes:  1.  He  who  knows  not  and  knows  not  that  he 
knows  not;  he  is  a  fool  —  shun  him.  2.  He  who  knows  not  and  knows  that  he 
knows  not;  he  is  simple — teach  him.  3.  He  who  knows  and  knows  not  that  he 
knows ;  he  is  asleep — awaken  him.  4.  He  who  knows  and  knows  that  he  knows; 
he  is  wise — follow  him. — Arabian  Proverb. 


\ 


—7 


98  Stevenson's  introductory  bookkeeping. 


MEMORANDA.— SET  G^ 


October,  1896. 

A..,  B.,  0.  and  D.  began  business  with  resources  and  liabilities  as  follows  :  A.'s  resources  :  Cash. 
$1,000;  bills  receivable,  $800,  note  of  B.'s,  dated  September  1,  1896,  with  interest  at  10%; 
mdse.,  $600.  A.'s  liabilities  :  Bills  payable,  note  to  0.  for  $300,  given  August  1,  1896,  with 
interest  at  6%. 

B.'s  resources  :  Cash,  $1,000.     B.'s  liabilities  :  Bills  payable,  note  to  A.,  $800. 
C.'s  resources  :  Keal  estate,  invoiced  at  $2,000  ;  bills  receivable,  note  given  by  A.,  $300,  with 

interest  to  date.     C.'s  liabilities  :  James  Smith,  on  account,  $600. 
D.'s  resources  :  Cash,  $500  ;  mdse.,  invoiced  at  $1,500.     D.'s  liabilities  :  A.  Mann,  on  account 


Note. — The  firm  assumes  the  resources  and  liabilities  invested  by  all  the  partners.  The  firm  cannot  owe  itself, 
nor  can  a  note  be  a  Bills  Receivable  and  a  Bills  Payable  to  the  same  person  at  the  same  time.  The  net 
investment  of  the  partner,  however,  must  be  the  difference  between  his  resources  and  liabilities  before  the 
formation  of  the  partnership.  The  foregoing  opening  entry  may  be  made  by  debiting  the  real  or  permanent 
resources,  and  crediting  the  real  or  permanent  liabilities,  and  crediting  each  partner  with  the  difference 
between  his  original  resources  and  liabilities,  or  his  net  investment.  The  opening  entry  may  also  be  made 
by  entering  the  resources  and  liabilities  of  each,  and  crediting  him  with  the  difference ;  then  check-mark 
all  items  that  cancel,  as  Bills  Receivable  in  A.'s  investment  and  Bills  Payable  in  B.'s  investment,  etc. 

3.  Sold  mdse.  to  P.  Cooper  for  $2,000.     Terms,  10/10,  n/30. 

Note. — This  means  10%  off  from  the  face  of  the  bill  if  it  is  paid  in  10  days,  but  nothing  off  if  the  full  time  of  30 
days  is  taken. 

4.  Paid  James  Smith  on  account,  by  check,  $300.     Deposit  $2,500  in  bank.     Bought  mdse.  to  the 

amount  of  $2,000,  for  cash. 

6.   Keceived  a  draft  from  P.  Cooper  at  three  days'  sight  on  John  Doe  for  amount  due  on  bill  of 
the  3d.     Draft  accepted. 

8.  Sold  mdse.  for  $3,000  cash. 

9.  D.  is  permitted  to  withdraw  from  the  business,  taking  out  his  worth  in  cash.     Mdse.  inventory, 

$1,200.     Keal  estate  inventory,  $2,800. 

10.  Keceived  cash  for  Doe's  acceptance  of  the  6th. 

11.  Paid  A.  Mann,  in  full  of  account,  $300  in  cash  and  $100  in  mdse. 

12.  C.  is  permitted  to  withdraw  his  worth  by  taking  the  firm's  note  for  $1,500  and  balance  in  cash. 

Mdse.  inventory,  $1,200.     Real  estate  inventory,  $3,000. 

13.  Sold  mdse.  for  cash,  $1,000. 

14.  Sold  real  estate  for  $600  cash;  the  real  estate  remaining  on  hand  is  a  farm  of  160  acres. 

16.  A.  withdraws  by  agreement,  taking  the  farm  as  his  share  and  $1,000  in  cash.  Mdse.  inventory, 
$500.     Farm,  $2,300. 


Stevenson's  intbopuctory  bookkeeping.  99 


SET  G^ 


MEMORANDA. 


October. 

'   3.   The  firm  of  A.  &  B.  employ  you  to  act  as  a  bookkeeper,  at  a  salary  of  $20  per  week.    It  is 
decided  that  you  are  to  keep  a  Cash-Journal,  Ledger,  and  Balance  Sheet.     The  interest  of 
each  partner  is  to  be  in  proportion  to  his  investment. 
A.'s  resources  and  liabilities   are   as   follows:    Resources:   Cash,  $900;   John  Smith,  $800; 

bills  receivable,  $400.     Liabilities:   Bills  payable,  $400;  Peter  Cooper,  $200. 
B.'s  resources  and  liabilities   are  as  follows:     Resources:    Cash,    $2,000;   bills  receivable 
$200.     Liabilities:   Bills  payable,  $1,200. 

4.  Bought  mdse.  of  A.  Mann,  giving  in  payment,  cash,  $100  ;  a  note  on  hand  of  Somebody  &  Co., 

$400  ;  and  the  firm's  note  at  30  days,  with  interest  at  6  %,  for  balance.    Mdse.  invoiced  at  $700. 
Discounted  the  bills  receivable  on  hand  at  6  %  for  33  days,  receiving  cash  for  proceeds. 

5.  Drew  a  draft  on  John  Smith  at  10  days'  sight  favor  of  A.  Mann,  and  sent  same  to  Mann  to 

apply  on  the  account  of  Peter  Cooper,  less  discount.     Face  of  draft,  $200. 

8.  B.  withdrew  from  the  firm,  taking  his  worth  in  the  balance  of  account  against  John  Smith,  put 

in  at  75  %  of  its  face  value,  and  balance  in  cash.     Mdse.  inventory,  $800. 

9.  Admitted  C.  as  a  partner,  on  payment  of  cash  equal  to  A.'s  present  worth. 

10.   Discounted  the  firm's  note  of  $1,200,  given  September  3,  and  drawing  interest  at  10%.     Note 
given  for  60  days.     Discount,  6%. 

17.  Paid  Student  two  weeks'  salary  in  cash.     A  thief  broke  in  and  stole  $10  in  cash  and  an  indefi- 

nite amount  of  mdse.     Find  proprietors'  worths.     Mdse.  inventory,  $500. 

18.  Admitted  D.  as  a  partner,  giving  him  a  one-third  interest  in  the  losses  or  gains  from  this  date, 

by  the  investment  of  $3,000  cash, 

20.  Discounted  the  firm's  note  of  the  4th  at  the  bank.     Discount,  6%. 

21.  Make  Balance  Sheet.     Mdse.  inventory,  $500. 


IDO  Stevenson's  inteoductory  bookkeeping. 


SET  G\ 


MEMORANDA. 


July,  1895. 

1.  A.  H.  Woehner  began  a  wholesale  and  retail  carpet  business  with  the  following  investments  : 
Resources  —  cash  deposited  in  First  National  Bank,  $5,000 ;  A.  R.  Taylor's  note  at  60  days 
from  June  1  of  this  year,  with  interest,  $500 ;  T.  H.  Dinsmore,  due  on  account,  $500.  Lia- 
bilities—  note  favor  of  J.  N.  Wilkinson,  drawn  May  1,  at  90  days,  with  interest,  $1,000  ;  note 
favor  M.  A.  Bailey  for  $560. 

1.  Paid  store  rent  by  check,  $100.     Employed  Student  as  bookkeeper,  and  agreed  to  pay  $100  per 

month.     Purchased  books  and  stationery  for  the  store  by  check,  $25. 

2.  Bought  furniture  for  the  store,  and  paid  the  same  by  check,  $200.     Ordered  of  Wm.  Clark  by 

letter,  subject  to  draft  at  30  days'  sight:  1,000  yards  ingrain  carpet;  500  yards  moquette; 
400  yards  Wilton.     Drew  check  for  $5  for  change  in  the  cash  drawer. 

3.  Placed  advertisement  in  Daily  Republican  to  stand  one  month. 

7.  Received  goods  ordered  from  Wm.  Clark.  Paid  freight  charges  by  check,  $28.  Accepted  Clark's 
draft  drawn  at  30  days'  sight,  $2,000 ;  balance  remitted  by  draft  drawn  on  First  National 
Bank  of  New  York  by  First  National  Bank,  Emporia,  $200.  Sold  M'L.  Jones  carpets 
amounting  to  $1,500,  receiving  in  payment  her  note  for  30  days,  dated  August  1,  $1,000 ; 
balance  in  cash,  $500. 

9.  Received  from  T.  H.  Dinsmore  his  note  to  balance  his  account,  due  in  30  days,  with  interest, 
$100 ;  a  draft  on  J.  N.  Wilkinson  at  sight,  $300 ;  cash,  $100.  Wilkinson  paid  draft  by  giving 
us  a  receipt  for  payment  on  our  note  to  him. 

10.  Paid  bill  for  advertising  by  check,  $15.50. 

11.  Discount  at  the  bank  all  notes  on  hand,  receiving  cash  for  proceeds. 

11.  Paid  Student,  by  check,  two  weeks'  salary,  $50. 

12.  Inventory:  Merchandise,  $1,300 ;  fixtures,  $150;  rent,  $50.     Admit  Student  as  an  equal  part- 

ner.    He  is  to  invest  cash  equal  to  Woehner's  present  worth. 


Stevenson's  intkoductory  bookkeeping.  101 


SET  G\ 


MEMORANDA. 


October. 

1.  A.,  B.  and  C.  formed  a  partnership,  the  interest  of  each  to  be  in  proportion  to  the  investment. 

A.'s  resources  were  :   B.,  on  account,  $600  ;  C,  on  account,  $900  ;  D.,  on  account,  $800.    A.'s 

liabilities  were  :   E.,  on  account,  $200  ;  F.,  on  account,  $300. 
B.'s  resources  were  :   G.,  on  account,  $1,000;  cash,  $500.     B.'s  liabilities  were:   A.,  on  account, 

$600  ;  C,  on  account,  $200  ;  H.,  on  account,  $100. 
C.'s  resources  were  :   B.,  on  account,  $200 ;  H.,  on  account,  $100  ;  cash,  $900.     C.'s  liabilities, 

were  :   A.,  on  account,  $900. 

2.  Drew  a  draft  at  sight  on  D.  for  $800,  favor  of  I.,  and  sent  to  I.  to  apply  on  the  account  of  F., 

$300,  E.,  $200,  and  balance  to  be  sent  in  merchandise. 

3.  Drew  a  draft  for  $1,000,  at  30  days'  sight,  on  G.,  and  discounted  the  same  at  bank  for  33  days 

at  6%. 

4.  Sold  a  $200  bill  of  merchandise  to  J.,  receiving  in  payment  his  note  for  $200,  at  10  days,  with 

interest  at  6%. 

5.  Bought  merchandise  of  K.,  invoiced  at  $2,000,  giving  in  payment  $300  cash,  and  our  note  at  30 

days,  with  interest  at  6%,  for  balance. 
8.   Discounted  note  on  J.  at  6%  at  bank,  receiving  cash  for  proceeds. 
10.    Sold  merchandise  biUed  at  $1,000  to  L.,  at  10/10,  5/20,  n/30. 

14.  L.  returned  certain  articles  of  merchandise  sent  him  on  the  10th,  which  were  invoiced  at  $16, 

and  sent  bank  draft  for  the  amount  due  us. 

15.  Discounted  our  note  of  the  5th,  paying  proceeds  in  cash. 

16.  Close  Ledger. 

Inventory. —  Merchandise, 


102  Stevenson's  introductory  bookkeeping. 


SET  G\ 


MEMORANDA. 


October,  1896. 


The  firm  of  A.,  B.,  C.  &  D.  employ  you  as  bookkeeper  at  a  salary  of  $20  per  week.     It  is  de- 
cided that  you  are  to  keep  a  Cash-Journal,  Ledger,  and  Balance  Sheet.     The  interest  of   each 
partner  is  to  be  in  proportion  to  his  investment.     Their  resources  and  liabilities  are  as  follows: 
A.'s  resources:   Gash,  $1,200;  bills  receivable,  $800;  note  of  B.'s  dated  Sept.  1,  1896,  with  interest 

at  10%;  mdse.,  $700.     A.'s  liabilities:   Bills  payable,  $200;  Peter  Cooper,  $500. 
B.'s  resources:    Cash,  $1,500;  C,  on  account,  $300;   mdse.,  $500,     B.'s  liabilities:   Bills  payable, 

note  to  A.,  $800. 
G.'s  resources:   Cash,  $700;  real   estate  valued  at  $1,000.     C.'s  liaWlities:   B.,  on  account,  $300;  A. 

Mann,  $400. 
D.'s  resources:  Mdse.  invoiced  at  $1,250. 

3.  Sold  mdse.  to  Peter  Cooper  for  $1,500.     Terms,  5/lO,  n/20. 

4.  Paid  A.  Mann  on  account  by  check,  $250.     Bought  of  A.  Mann,  on  account,  mdse.  invoiced 

at  $800. 

5.  Received  a  draft  from  Peter  Cooper  at  3  days'  sight  on  John  Doe  to  settle  his  account;  draft 

accepted. 

6.  Sold  mdse.  for  $1,750  cash.     Accepted  A.  Mann's  draft  on  us,  favor  Peter  Cooper,  at  3  days' 

sight,  for  $750. 
9.   Sold  John  Smith,  on  account,  mdse.,  $150.     Sold  mdse.  to  Peter  Cooper  on  account,  for  $350. 

10.  D.  is  permitted  to  withdraw  from  the  firm,  taking  out  his  worth  in  cash.     Mdse.  inventory, 

$1,500;  real  estate  inventory,  $1,200. 

11.  Drew  a  draft  at  10  days'  sight  on  John  Smith,  and  sent  same  to  A.  Mann  to  apply  on  account; 

face  of  draft,  $150. 

11.  Received  cash  of  John  Doe  for  his  acceptance  of  the  5th  inst.     Bought  a  bill  of  mdse.  of  A- 

Mann,  giving  in  payment,  cash,  $100,  a  sight-draft  on  Peter  Cooper  for  $250,  and  the  firm's 
note  at  30  days,  with  interest  at  6%,  for  balance.     Mdse.  invoiced  at  $850. 

12.  Peter  Cooper  offers  the  balance  of  his  account  against  John  Smith  for  66f  %  of  its  face  value- 

His  offer  accepted.     Face  value  of  John  Smith's  account,  $1,350.     Paid  our  acceptance  of  the 
6th  inst. 

13.  Discounted  the  firm's  note  of  the  11th  at  the  bank. 

15.  E.  is  admitted  as  a  partner,  and  on  account  of  his  experience  in  the  mercantile  world  he  is 
allowed  a  salary  of  $10  per  week  in  addition  to  his  share  of  the  firm's  losses  or  gains,  which 
is  in  proportion  to  his  investment.  Cash  invested,  $3,000.  Inventories  same  as  on  the  10th, 
with  the  addition  of  property  at  cost,  purchased  since  that  date. 

15.  Peter  Cooper  is  paid  in  full  of  account,  cash,  $100,  and  the  balance  in  mdse.     Received  from 

John  Smith,  to  apply  on  his  account,  his  note  at  30  days  for  $600;  cash,  $400;  mdse.,  $200. 
Gave  him  a  receipt  in  full  of  account.     Paid  Student  two  weeks'  salary  in  cash. 

16.  C.  is  permitted  to  withdraw  his  worth  by  taking  the  real  estate,  valued  at  $1,000,  and  balance 

in  cash.     Mdse.  inventory,  $2,000. 

17.  Sold  Peter  Cooper,  on  account,  mdse.  amounting  to  $400.     Sold  mdse.  for  $600,  cash. 

18.  Bought  of  A.  Mann  mdse.,  for  which  he  accepts  our  account  against  Peter  Cooper  for  80%  of 

face  value;  cash,  $280.     Mdse.  invoiced  at  $600. 
20.   Thieves  broke  in  the  store  and  stole  $20  in  cash  and  an  indefinite  amount  of  mdse. 

22.  E.  is  paid  one  week's  salary. 

23,  Make  Balance  Sheet.    Mdse.  inventory,  $1,200. 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


103 


SET  G\ 


MEMOEANDA. 


S.  H.  Rich  and  J.  O.  Graham,  coal  dealers,  for  many  years  divided  their  profits  in  the  follow- 
ing manner:  Each  partner  was  credited  with  interest  at  5  per  cent,  per  annum  on  his  capital  at 
the  end  of  the  year,  and  the  balance  of  net  profit  was  then  equally  divided.  The  articles  of 
copartnership  provided  that,  on  the  death  of  either  of  them,  the  survivor  should  take  the  business 
and  enter  into  a  bond  with  the  executors  of  the  deceased  partner  to  pay  out,  within  a  term  of  years, 
the  amount  of  his  capital,  with  proportion  of  interest  and  share  of  profits  at  the  date  of  death. 

S.  H.  Rich  died  on  the  13th  of  February,  1889.  You  are  required  to  journalize  and  post  their 
transactions  from  the  following  notes,  and  to  ascertain  the  amount  of  capital  of  the  respective 
partners  at  the  time  of  their  dissolution. 

Enter  in  Cash  Journal,  post,  close  Ledger,  and  present  a  Balance  Sheet. 


t/anuary 

S.  H.  Rich  credited  with $2,371 

J.  O.  Graham  credited  with 2,025 

They  had  a  stock  of  coal  on  hand  worth.  2,847 
Sprague   &   Co.,   agents,   Hartford,   coal 

(estimated),  at  cost 450 

They  owed  to  the  Union  Mining  Co 724 

They  owed  the  Santa  Fe  R.  R.  Co 185 

They  owed  P.  Woodworth 976 

They  had  bills  payable  outstanding  to: 

Wood  &  Co 86 

Cook  &  Co 101 

They  had  cash  in  the  bank 876 


2,  1889. 

They  owned   wagons,   horses    and  carts 

worth $1,299 


Cash  on  hand , 

They  held  bills  receivable: 

No.  48.  W.  S.Picken 

No.  49.   J.  Black 

No.  50.   W.  H.  Johnson 

Their  debtors  on  open  accounts  were: 

C.  W.  Robins 

Will  White 

Peter  Stokes 


74 

49 

28 
129 

127 
79 
109 
Various  persons 401 


2.  Sold  Peter  Stokes,  for  cash,  50  tons  coal  for  $144. 

4.  Received  check  from  Peter  Stokes,  on  account,  $75. 

5.  Paid  wages,  $32. 

7.  Bought  of  Union  Mining  Company,  200  tons  at  $2,  for  note  at  2  months, 

9.  Paid  Cook  &  Co.'s  bill,  by  cash,  $101. 

10.  Shipped  to  our  agents,  Sprague  &  Co.,  Hartford,  500  tons  at  $2,  $1,000. 

11.  Received  of  C.  W.  Robins,  check  for  $125,  and  sent  him  receipt  in  full  of  his  account. 

12.  Paid  freight  and  sundry  expenses,  cash,  $5. 

13.  Sold  W.  H.  Johnson,  300  tons  at  $5,  $1,500;  received  his  check  for  $500;  received  his  note 

at  2  months  for  $1,000. 

15.  Received  of  Sprague  &  Co.,  Hartford,  account  of  sales,  with  sight-draft  for  $2,000. 

17.  Paid  Wood  &  Co.'s  acceptance,  $86. 

18.  Sold  Thos.  King,  140  tons  coal  at  $3,  $420 ;  received  his  check,  less  2%  discount  allowed  him, 

$411.60 ;  received  cash  on  sundry  debts  collected,  $107. 

19.  Paid  wages,  $24. 


104  Stevenson's  intkoductory  bookkeeping. 

21.   Paid  Union  Mining  Company,  on  account,  $500;  paid  Santa  Fe  Railroad  Company,  $137. 

24.  Received  of  Sprague  &  Co.,  Hartford,  account  of  sales,  and  sight-draft  for  $407.     By  agree- 

ment, this  terminated  their  agency. 

25.  Bought  of  P.  Wood,  18  coal  trucks,  on  note  at  3  months,  $720. 

26.  Received  cash  on  sundry  accounts  collected,  $75 ,;  deposited  in  bank,  $165. 

27.  Received  of  Will  White,  in  full  of  account,  $79  ;  gave  receipt  in  full.   Sold  P.  Stokes  500  tons, 

on  his  note  at  3  months,  $1,600. 

28.  Received  payment  of  bill  sent  W.  S.  Picken,  $49  ;  paid  sundry  expenses  and  taxes,  $3. 

31.   Paid  rent,  $10.     Sold  C.  W.  Robins,  180  tons  at  $3,  $540  ;  received  check  on  account,  $500. 

February. 
1.   S.  H.  Rich  drew. out  cash,  $200  ;  J.  O.  Graham  drew  out  cash,  $200. 
5.   Received  of  J.  Black,  payment  of  bill,  $28. 
13.   On  this  date  the  partnership  was  dissolved  by  the  death  of  S.  H.  Rich.     Coal  on  hand  valued 
at  $1,600.     Interest  had  accrued  on  partners'  worths  since  January  1.     Wagons,  carts  and 
horses  estimated  to  be  worth  $100  less  than  cost. 


QUESTIONS. 


1.  Explain  the  purpose  of  each  of  the  six  sets  G. 

2.  Why  is  the  Cash-Journal  the  best  form  of  book  for  a  person  not  engaged  in  a  large  business  ? 

3.  How  does  the  Cash-Journal  differ  from  the  ordinary  Cash  Book  ? 

4.  How  could  a  transaction  not  involving  cash  be  disposed  of  in  a  Cash-Journal  ? 

5.  How  can  you  test  the  accuracy  of  entries  made  in  the  Cash-Journal  ? 

6.  What  are  the  four  classes  of  mankind  ?    To  which  do  you  belong  ? 

7.  Explain  how  certain  partners  withdrew  from  the  firms  in  the  sets  G. 

8.  Explain  canceling  items  in  partnership  formations. 

9.  Palmer,  Fahnestock,  Hausam  and  Pentz  form  a  partnership  ;  interest  to  be  in  proportion  to  the  investment. 


Palmer's  resources  were :  Cash,  $100 
Fahnestock's  "  "  Cash,  $200 
Hausam's  "  "  Cash,  $300 
Pentz 's  "        "        Cash,  $200 


Fahnestock,  on  account,  $500.  Liabilities :  Hausam,  on  account,  $400. 

Pentz,  "  $500.  "  Palmer,  "  $500. 

Palmer,  "  $400.  "  Pentz,  "  $500. 

Hausam,  "  $500.  "  Fahnestock,      "  $500. 

(a)  What  were  the  aggregate  resources  before  the  formation  of  the  partnership?  (6)  After?  (e)  What  was 
the  aggregate  worth  of  the  four  before  the  formation  of  the  partnership?  (d)  After?  (e)  What  two  Journal 
entries  could  be  made  for  the  opening?  (/)  What  entries  cancel?  What  is  the  interest  of  each? 
10.  Eskridge,  Stout  and  Rowland  form  a  partnership.  The  net  investment  of  Eskridge  is  $954 ;  Stout,  $876 ;  Row- 
land, $1,297.  It  is  agreed  that  they  shall  receive  6%  interest  on  all  investments  over  $800,  and  share  the 
losses  or  gains  equally.  They  remain  in  business  a  year,  and  then  find  that,  before  paying  interest  on  the  ex- 
tra investment,  the  gains  exceed  the  losses  by  $1,500.    What  are  their  present  worths? 


SET  H. 


FORMS   OF  JOURNALS 


Objects. —  To  illustrate  the  tendency  to  improve  upon  the  old  Journal  by  the  use  of  special 
columns. 


Instructions. —  The  teacher  may  have  the  student  rule  any  of  the  various  forms  of  Journal, 
and  enter  in  them  any  of  the  sets  in  this  book.  Special  columns  may  receive  the  name  of  any 
account  occurring  frequently  in  the  business.  The  totals  of  these  columns  are  posted  whenever 
desired.     This  set  should  be  entered  in  each  of  the  seven  Journal  forms. 

Columnar  Journals,  or  books  which  have  the  same  object  in  view,  are  very  popular  in  all  of 
the  large  business  houses  of  to-day.  Their  advantage  is  in  grouping  like  items  of  debit  or  credit, 
that  time  may  be  saved  by  the  posting  of  totals,  or,  like  the  Cash  Book,  in  dispensing  with  the 
posting  entirely. 


"Time  is  money,  and  times  are  hard." 

"Few  things  are  impossible  to  skill  and  industry." 


106  Stevenson's  intkoductory  bookkeeping. 


MEMORANDA.— SET  H. 


January,  1897. 

2.  Student  began  business  with  following  resources  and  liabilities:  Resources  —  cash,  $1,000  ; 
mdse.,  $700  ;  unexpired  rent  on  store  building,  $200.  Liabilities  :  John  Bailey,  on  account, 
$200  ;  bills  payable,  dated  December  1,  1896,  for  $300,  with  interest  at  6%. 

4.  Sold  mdse.  billed  at  $500  to  Geo.  Barcus ;  terms,  10/10,  5/20,  n/60. 

5.  Bought  mdse.,  invoiced  at  $1,800,  of  V.  E.  Oreighton  &  Co.;  terms,  30  days.   Sold  John  Bailey, 

on  account,  mdse.  invoiced  at  $400. 

6.  Sold  mdse.  to  Fremont  Miller,  invoiced  at  $600,  taking  in  payment  his  note  at  30  days  for  $300, 

and  a  bank  draft  on  First  National  Bank,  New  York,  drawn  by  Admire  National  Bank,  for  $300. 

7.  Bought  coal  for  use  of  store,  for  cash,  $12  ;  paid  cash  for  insurance  policy  of  $1,500  on  stock  of 

goods  ;  premium,  three-fourths  of  1%. 

10.  Sold  John  Perry  mdse.  billed  at  $500  ;  terms,  10  days. 

11.  A  fire  consumed  all  the  mdse.  on  hand. 

14.  Received  from  the  insurance  company  the  full  amount  of  the  insurance  policy  held. 

15.  Compromised  with  John  Bailey,  accepting  $150  cash  in  full  of  his  account. 
17.   Discounted  our  note  of  December  1,  1896  ;  time  of  discount,  33  days. 

20.   Received  cash  of  Geo.  Barcus  for  bill  of  January  4. 

February. 

4.  Paid  bill  of  January  5  by  a  sight-draft  drawn  on  John  Perry  for  amount  of  his  bill  of 
January  10,  plus  interest  at  6%  from  maturity,  15  days,  and  balance  in  cash. 

6.   Bought  of  Sanford  Sites,  at  30  days,  mdse.  invoiced  at  $740. 
20.  Accepted  a  draft,  at  30  days,  drawn  by  Sanford  Sites  favor  of  James  Nolan,  for  $500. 
22.   Bought  of  Sanford  Sites,  at  60  days,  mdse.  invoiced  at  $1,000. 
27.   Bought  real  estate  of  0.  A.  Shively,  on  account,  at  30  days,  for  $700. 

March. 
1.   Sold  real  estate  to  Sanford  Sites,  at  25  days,  for  $800. 
Date  unknown.     Equated  Sanford  Sites's  account  and  paid  him  amount  necessary  to  balance  his 

account. 
Find  the  equated  date.    What  amount  would  equitably  settle  his  account  if  paid  March  5? 

Note. —  Consult  your  arithmetic  for  explanation  of  equation  of  payments.     While  it  is  an  interesting  and  mathe- 
matically correct  principle,  it  is  not  always  practicable,  and  is  not  enforceable  by  law.     It  is  practically  un- 
known in  business. 
( )    On  above  date,  find  Student's  worth  and  close  accounts. 

Inventory.— Mdse.,  $2,000. 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


107 


JOURNAL  A  (Gommon  Journal). 


JAN.  2,  1897. 


Cash, 

1,000 

- 

Mdse., 

700 

Expenses,  inventory, 

200 

John  Bailey, 

200 

Bills  Payable, 

300 

Student, 

1,400 

Jan. 

1 

Geo.  Barcus, 

Mdse., 

500 

500 

5 

Mdse., 

V.  E.  Creighton, 

1,800 

1,800 

5 

John  Bailey, 

Mdse., 

400 

400 

C 

Bills  Receivable, 
Cash, 

Mdse., 

300 
300 

GOO 

7 

Expense, 

23 

25 

Cash, 

23 

25 

10 

John  Perry, 

Mdse., 

500 

500 

14 

Cash,                                                                       ,.   •  '          . 
Mdse., 

1,500 

1,500 

15 

Cash, 

Loss  and  Gain, 

John  Bailey, 

150 

50 

200 

17 

Bills  Payable, 

Interest. 

Cash, 
Discount, 

300 
4 

302 
1 

33 
67 

20 

Cash, 

Mdse.  Discount, 

G«o.  Barcus, 

475 
25 

500 

Feb. 

4 

V.  E.  Creighton, 

Cash, 

John  Perry, 
Interest, 

I 

1,800 

1,298 

500 

1 

75 

25 

100*7 

ss 

100»7 

S5 

10,027 

25 

10,027 

25 

108 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


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STEViNSON  S    INTRODUCTORY   BOOKKEEPING. 


109 


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STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


JOURNAL  D  (Special  Colitmn). 

JANUARY  2,  189. 


DaU. 

^<«tori/. 

Dr.  Titles. 

jo 

Dr.  Amts.  Posted. 

Cr.  Titles. 

Cr.  Amts.  Posted. 

Jan. 

2 

Invested, 

John  Bailey, 

V 

200 

2 

<( 

2 

Investment, 

Student, 

V 

1,400 

4 

Invoice  on  acet., 

Geo.  Barcus, 

V 

500 

5 

((             (( 

John  Bailey, 

400 

5 

Bo't  on  acct.. 

V.E.Creighton. 

V 

1,800 

6 

Invoice  No.  — . 

7 

Coal,"  Insurance,"  25 

10 

Invoice  on  acct.. 

John  Perry, 

V 

500 

14 

In  full  of  insurance. 

15 

In  full  of  acct.. 

Loss  and  Gain, 

V 

50 

John  Bailey, 

V 

200 

17 

Discounted  note  of  Dec.  1, 

Interest, 

V 

4 

Discount, 

V 

1 

67  , 

20 

In  full  of  bill  Jan.  4, 

Geo.  BarcuB, 

V 

500 

Feb. 

4 

Pd.  bill  of  Jan.  5, 

V.E.Creighton, 

V 

1,800 

Jno.  Perry, 

500 

For  15  ds.  overdue, 

Interest, 

1 

25 

JOURNAL  E  (Special  Column). 


Expense. 

Debit  Titles. 

Debit 
Amts.  Posted. 

Date. 

History. 

Credit  Titles. 

it) 

Credit 
Amts,  Posted. 

200 

Jan. 

2 

Invested, 

John  Bailey, 

V 

200 

2 

Investment, 

Student, 

V 

1,400 

Geo.  Barcus, 

V 

500 

4 

Sold  on  acct.. 

5 

Bo't  on  aect., 

V.E.Creighton, 

V 

1,800 

John  Bailey, 

V 

400 

5 

Sold  on  acct.. 

6 

Bill  No.  — , 

23 

25 

7 

Coal,  Insurance, 

John  Perry, 

V 

500 

10 

Sold  on  acct.. 

14 

In  full  for  Ins., 

Loss  and  Gain, 

V 

50 

15 

In  full  of  acct., 

John  Bailey, 

V 

200 

Interest, 

V 

4 

17 

Dis.  note  of  Dec.  1, 

Discount, 

V 

1 

67 

20 

Settlement  bill  of  4th, 

Geo.  Barcus, 

V 

500 

V.E.Creighton, 

V 

1,800 

Feb. 

4 

Settlement  bill  of  5th, 

John  Perry, 

V 

500 

Interest, 

V 

1 

25 

Expenre, 
Mdse., 

V 

V 
V 

3,254 

Balance, 

Mdse., 

Balance, 

V 

4,602 

92 

223 

25 

2,500 

3,500 

1 

STEVENSON  S  INTRODUCTORY  BOOKKEEPING. 


Ill 


DEBITS. 

CREDITS. 

Cash. 

Bills 
Rec'able. 

Mdte. 

Expense. 

BilU 
Payable. 

Mdte.  Di». 

Cash. 

Bills 
Rec'able. 

Mdse, 

Bills 
Payable. 

1,000 

700 

200 

300 

500 

400 

1,800 

300 

300 

600 

23 

25 

23 

25 

500 

1,500 

1,500 

150 

300 

302 

33 

475 

25 

1,298 

75 

Cash. 

Merchandise. 

Bills  Receivable. 

Mdse.  Discount. 

Bills  Payable. 

Dr. 

Cr. 

Dr. 

Or. 

Dr. 

Cr. 

Dr. 

Cr. 

Dr. 

Cr. 

1,000 

700 

300 

500 

1,800 

400 

300 

600 

300 

23 

25 

500 

1,500 

1,500 

150 

302 

33 

300 

475 

25 

1,298 

75 

1,800 

67 

2,500 

3,500 

3,425 

1,624 

33 

1,800 

67 

112 


STEVENSON  S    INTKODUCTORY    BOOKKEEPING. 


JOURNAL  F  (Special  Column). 

DEBIT. 

CREDIT. 

REMARKS. 

JOUENAL  Gr— Cash -Journal  (Special  Column). 


CASH   DR. 


L.  P.        Sundries.  Mdse. 


STEVENSON  S  INTRODUCTORY  BOOKKEEPING. 


113 


SUNDRIES, 

DEBIT. 

CREDIT. 

P. 

Debit. 

P. 

CredU. 

Cash. 

Bank. 

Mdse. 

Expense. 

Cash. 

Mdse. 

CASH   CR. 


L.  P.    Sundries.         Mdse.         Expense. 


SET  I . 


SHIPMENTS  AND  CONSIGNMENTS. 


Objects. —  (1)  Drill  on  making  difficult  Journal  entries,  including  joint  shipments.     (2)  Ac- 
quaintance with  the  methods  of  shipping  and  form  of  statements. 


Instructions. — Journalize,  simple  Journal  form,  and  follow  any  logical  order  of  procedure  to 
close  of  set.  The  teacher  may,  at  his  discretion,  require  this  set  to  be  written  in  any  of  the  various 
Journal  forms. 


"  Every  man  is  a  book  ;  those  who  know  how  can  read  him." 

••When  the  occasion  is  piled  high  with  difficulty,  we  must  rise  high  with  the  occasion." 


116  Stevenson's  introductory  bookkeeping. 


COMMISSION,  OR  SHIPMENTS  AND  CONSIGNMENTS.— SET  I' 


Shipment  is  the  name  given  to  accounts  representing  the  cost  of  goods  sent  to  others  —  usually 
a  commission  merchant  —  to  be  sold  on  account  and  risk  of  the  shipper.  The  shipments  are  dis- 
tinguished as  Shipt.  No.  1,  No.  2,  etc.  The  terms  'Risk,  Venture  and  Speculation  may  be  used  in- 
stead of  Shipment.  The  one  making  the  shipment  is  called  the  consignor,  and  the  one  receiving  it 
the  consignee. 

A  shipment  account  belongs  to  the  property  class,  and  is  debited  or  credited  according  to  the 
principles  for  property.  If  it  is  desired  to  close  the  books  before  returns  have  been  received  from 
the  shipment,  the  cost  of  the  shipment  is  taken  as  an  inventory,  and  is  accordingly  placed  among 
the  resources. 

An  Account  Sales  is  a  statement  giving  an  account  of  the  sales,  together  with  the  charges,  com- 
mission, etc.,  and  showing  the  net  proceeds.     It  is  sent  by  the  consignee  to  the  consignor. 

Shipments  in  Company,  or  Joint  Shipments,  or  Joint  Ventures,  as  they  are  variously  called, 
consist  of  a  shipment  by  one  or  more  persons  to  a  commission  merchant  who  assumes  a  share  of 
the  risk.  Such  a  transaction  involves  no  new  principles.  Debit  the  commission  merchant  for  the 
amount  he  gets  into  your  debt,  and  debit  the  shipment  with  its  cost,  or  the  amount  of  the  risk 
taken.  The  shipping  charges  are  a  part  of  the  cost  of  the  goods,  and  the  consignee  must  be  debited 
with  his  share. 

Consignments,  Sales,  Commission  Sales,  etc.,  are  terms  applied  to  goods  received  to  be  sold  on 
the  consignor's  account  and  risk.  The  consignee  debits  Consignment  account  when  the  goods  are 
received  with  their  cost  to  him,  but  not  with  their  original  cost.  He  credits  the  consignment  with 
amounts  received  when  the  goods  are  sold.  He  debits  the  consignment  with  his  commission,  and 
credits  Commission  account,  which  will  show  his  gain.  He  debits  Consignment  account  with  the 
net  proceeds,  which  are  remitted  to  the  consignor,  or  for  which  the  consignor  is  given  credit.  The 
loss  or  gain  produced  by  the  consignment  is  not  shown  on  the  face  of  the  account,  as  in  shipments. 

Consignment  Company  or  Merchandise  Company,  or  Joint  Consignment  No  — ,  are  the  terms 
applied  to  goods  received  by  a  commission  merchant  to  be  sold  partly  on  the  account  of  the  con- 
signor and  himself.  The  account  may  be  treated  the  same  as  an  ordinary  consignment,  or  it  may 
be  made  to  show  the  loss  or  gain  on  its  face,  as  any  other  property  account. 

The  books  used  for  a  shipment  and  consignment  business  are  many,  and  will  be  fully  ex- 
plained in  Advanced  Bookkeeping. 

MEMORANDA. —  (Illustrative.) 
October,  1896. 

1.   Began  business  with  $6,500,  in  cash.     Shipped  and  consigned  to  Smith  &  Co.,  Kansas  City,  to 

be  sold  on  our  account  and  risk,  wheat  purchased  of  farmers  this  date  for  $1,595,  cash  ;  paid 

drayage,  man,  etc.,  $15. 
6.   Shipped  to  Brown  &  Co.,  St.  Louis,  apples  bought  for  cash  this  date  for  $3,000,  and  on  which 

they  have  agreed  to  assume  half  the  risk,  and  have  a  proportionate  share  of  the  gains  ;  paid 

shipping  expenses,  $25. 

10.  Received  from  Sweet  &  Co.,  New  Orleans,  to  be  sold  on  their  account  and  risk,  one  car-load  of 

bananas  and  oranges  ;  paid  freight  and  cartage,  $20. 

11.  Sold  Jones  &  Stone  bananas  and  oranges  received  from  Sweet  &  Co.,  for  $1,200,  cash. 

12.  Received  from  Peters  &  Co.,  Kansas  City,  one  car-load  Missouri  potatoes,  invoiced  at  $600,  on 

which  we  agree  to  take  one-fourth  risk  ;  paid  freight  and  drayage. 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


117 


12.   Received  of  Smith  &  Co.  the  attached  account  sales,  showing  our  net  proceeds  to  be  $1,545,12 
for  which  they  remitted  a  bank  draft  in  settlement : 


SniTH  &  Co., 
GRAIN  COMMISSION  MERCHANTS. 


Kansas  City,  Mo 9  °.^...* i?: 189..?.. 


(m  r .   Your  Name , 

Somewhere,    Kan. 

Below  find  account  sales  of  wheat,  showing  net  proceeds,  $. ? * 

for  which  find  inclosed  Kew  YorJc  exchange. 

Respectfully  soliciting  a  continuance  of  your  favors,  we  are, 

Yours  truly, 
2gQ  6  SMITH  ^  CO. 


Oct. 

(  ( 
(  ( 


400  bu. 

1,000  bu. 

800  bu. 

600  bu. 


;0.50 
.75 
.90 

1.00 


Freight  charges, 
Drayage  and  storage. 
Commission, 


200 
750 
720 
600 


224 
100 
400 


88 


2  ,.270 


724 


1,545 


88 


12 


20.  Received  account  sales  from  Brown  &  Co.,  St.  Louis,  for  apples  sent  on  the  6th.     Our  pro- 

ceeds, remitted  in  cash,  $4,000. 

21.  Rendered  Sweet  &  Co.  an  account  sales  of  their  consignment  of  the  10th.     Our  commission  at 

10%  on  sales,  $120.     Sent  bank  draft  for  proceeds.     Find  worth. 

The  foregoing  transactions,  journalized,  would  appear  as  follows : 


Oct. 

1 

Cash, 

Self, 

6,500 

6,500 

1 

Shipt.  Smith  &  Co., 
Cash, 

1,610 

1,610 

6 

Shipt.  Brown  &  Co., 

Brown  &  Co., 

Cash, 

1,512 
1,512 

50 
50 

3,025 

10 

Con,  Sweet  &  Co., 
Cash, 

20 

20 

11 

Cash, 

Con.  Sweet  &  Co., 

1,200 

1,200 

12 

Con.  Peters  &  Co., 
Cash, 
Peters  &  Co., 

180 

30 
150 

12 

Cash, 

Shipt.  Smith  &  Co., 

1,545 

12 

1,545 

12 

20 

Cash, 

Brown  &  Co., 
Shipt.  Brown  &  Co., 

4,000 

1.512 
2,487 

50 
50 

21 

Con.  Sweet  &  Co., 

Com., 

1,180 

120 

Cash, 

1 

1,060 

118  Stevenson's  introductory  bookkeeping. 


QUESTIONS  ON  SHIPMENTS  AND  CONSIGNMENTS. 


1.  Define  Shipments. 

2.  What  other  terms  may  be  used  instead  of  Shipments? 

3.  When  debit  Shipments? 

4.  When  credit  Shipments? 

5.  To  which  class  of  accounts,  with  respect  to  results,  does  Shipment  account  belong? 

6.  If  you  desire  to  find  your  worth  before  returns  have  been  received  from  certain  shipments,  how  will  you  treat 

Shipment  account? 

7.  What  is  an  Account  Sales  ? 

8.  What  are  Joint  Shipments  or  Ventures  in  Company  ? 

9.  How  journalize  a  joint  shipment  ? 

10.  Define  Consignments. 

11.  Define  Commission. 

12.  When  debit  Consignments? 

13.  When  credit  Consignments? 

14.  Is  the  loss  or  gain  produced  by  the  Consignment  shown  on  the  face  of  the  account  ? 

15.  How  do  you  treat  Consignments  in  Company  or  Consignments  received  on  Joint  Account  ? 

16.  If  you  desire  to  find  your  worth,  and  you  have  goods  on  hand  belonging  to  a  consignment,  how  would  you  treat 

them? 

17.  If  the  Consignor  should  draw  on  you  before  you  have  sold  all  the  goods  belonging  to  the  consignment,  what 

entry  would  you  make,  if  the  draft  were  a  30-day  acceptance? 

18.  You  drew  a  sight-draft  for  $100  on  T.  B.  Brown,  Topeka,  to  whom  you  had  previously  consigned  mdse.,  and 

sent  same  to  O.  P.  M.  McClintock  to  apply  on  the  account  of  W.  M.  Davidson.    What  is  your  Journal  entry? 

19.  Which  side  of  a  Shipment  account  will  be  the  greater  when  it  shows  a  loss  ?    A  gain  ? 

20.  Why  is  wheat  usually  worth  more  in  Kansas  City  than  in  your  home  market  ? 


Stevenson's  introductory  bookkeeping.  119 


SET  I^ 


SHIPMENTS  AND  CONSIGNMENTS.— MEMORANDA. 


December. 


1.  J.  F.  Dunn,  of  Wichita,  Kan.,  began  a  commission  business  on  general  farm  produce,  invest- 

ing $2,000  in  cash.  Paid  one  month's  rent  in  advance,  $25.  Bought  office  desk  and  chairs 
for  $45,  office  books,  blanks,  etc.,  $5.50. 

2.  Bought  for  cash  of  T.  A.  Bickford,  Pittsburg  :  8  tubs  butter,  24,  30,  26,  28,  27,  24,  29,  28  lbs., 

at  13  cts.  Paid  freight  and  drayage,  $2.75.  Received  from  Silas  Benner,  Great  Bend,  to  be 
sold  on  his  account  and  risk  :  6  cases  eggs,  30  dozen  each;  125  lbs.  cheese.  Paid  freight  and 
cartage  on  same,  $1.75.     Sold  to  J.  C.  Ranney,  on  account,  4  tubs  butter,  108  lbs.,  at  18  cts. 

4.  Received  from  O.  B.  Clinard,  Stafford,  5  dozen  turkeys,  to  be  sold  on  his  account  and  risk. 
Sold  6  cases  eggs,  30  dozen  each,  at  16  cts.  (Consignment  S.  Benner.)  Bought  for  cash, 
576  lbs.  dressed  chickens,  at  5  cts.  Sold  to  C.  W.  Mills,  on  account,  125  lbs,  cheese,  at  15 
cts.     (Con.  S.  Benner.) 

6.  Received  from  Henry  Lawson,  Beloit,  to  be  sold  on  his  account  and  risk,  542  lbs.  cheese. 
Sold  to  W.  A.  Wilson,  for  cash,  4  tubs  butter,  108  lbs.,  at  17  cts.  Sold  to  D.  C.  Sands,  Harper  : 
5  dozen  live  turkeys,  750  lbs.,  at  6  cts.  Terms,  2/10.  (Con.  O.  B.  Clinard.)  Received  from 
John  R.  Picken,  Topeka,  per  A.  T.  &  S.  F.  R.  R.,  600  lbs.  creamery  butter,  to  be  sold  on  his 
account  and  risk  ;   12  lbs.  wasted  in  shipping.     Paid  freight  on  same,  $3.50. 

6.  Rendered  account  of  sales  to  Silas  Benner,  Great  Bend,  reserving  5%  commission  and  remit- 

ting check  for  proceeds.  Shipped  Beadle  &  Smith,  Lawrence,  to  be  sold  on  their  account 
and  risk,  576  lbs.  dressed  chicken.  Bought  for  cash,  50  dozen  eggs,  at  12  cts.  Paid  clerk 
hire  for  the  week  in  cash,  $12.50. 

7.  Paid  for  glazing  front  windows  of  establishment,  $15.     Sold  to  Wm.  C.  Black,  Winfield,  on 

his  note  at  30  days,  400  lbs.  cheese,  at  13  cts.     (Con.  Henry  Lawson.) 

8.  Sold  for  cash  to  Hines  &  Ball,  Wellington,  3  doz.  eggs  at  15  cts.     Shipped  to  Hall  &  Co., 

Kansas  City,  Kan.,  to  be  sold  on  our  account  and  risk,  300  lbs.  creamery  butter  at  15 
cts.     (Con.  J.  R.  Picken.) 

9.  Paid  for  advertising,  $10.     Received  from  D.  C.  Sands,  Harper,  check  in  payment  of  his  pur- 

chase of  the  5th.  (Con.  O.  B.  Clinard.)  Remitted  proceeds  to  O.  B.  Clinard.  Cost  of 
draft,  10  cts.;  commission  on  sales,  5  per  cent. 

11.  Sold  to  Green  &  Dillon,  on  note  at  10  days,  288  lbs.  creamery  butter,  at  18  cts.     (Con.  Jno. 

R.  Picken.)  Wm.  C.  Black  discounted  his  note  of  7th,  at  6%.  (Con.  H.  Lawson.)  Sold 
for  cash  to  R.  O.  Winston,  Arkansas  City,  142  lbs.  cheese,  at  14  cts.  (Con.  H.  Lawson.) 
Remit  proceeds  of  sales  to  H.  Lawson,  reserving  commission  of  5%.  Received  check  from 
Beadle  &  Smith,  Lawrence,  for  proceeds  of  shipment  of  the  6th,  $32, 

12.  Received  proceeds  of  shipment  of  8th,  from  Hall  &  Co.,  $51.30.     Sold  for  cash  to  Hunter  & 

Davis,  20  doz.  eggs,  at  16  cts.  Received  from  Silas  Benner,  Great  Bend,  to  be  sold  on  his 
account  and  risk,  500  lbs.  common  fowl;  30  doz.  eggs. 

1 3.  Paid  cash  for  new  sign,  $12.     Bought  for  cash,  400  lbs.  skim  cheese,  at  4  cts.     Sold  for  cash, 

300  lbs.  fowl,  at  6  cts.  (Con.  S.  Benner.)  Received  from  O,  B.  Clinard,  to  be  sold  on  his 
account  and  risk,  80  bu.  apples;  60  doz.  eggs. 


120  Stevenson's  introductory  bookkeeping. 

14.  Received  from  Hunter  &  Davis  on  account,  300  lbs.  hams,  at  8  cts.     Sold  for  cash,  to  W.  R. 

Collins,  Independence,  20  doz.  eggs,  at  18  cts.     (Con.  S.  Benner.) 

15.  Sold  J.  D.  Benson,  for  cash,  60  bu.  apples,  at  $1.    (Con.  O.  B.  Clinard.)     Bought  on  our  note 

at  30  days,  200  bu.  potatoes,  at  60  cts.  Sold  Mooney  &  Clinesmith,  for  cash,  10  dozen  eggs, 
at  20  cts.    (Con.  S.  Benner.) 

16.  Sold  Harlan  &  Groves,  for  cash,  200  lbs.  common  fowl,  at  8  cts.   (Con.  S.  Benner.)     Bought, 

for  cash,  300  lbs.  live  turkeys,  at  6  cts.  Remit  proceeds  of  sales  to  S.  Benner,  reserving  com- 
mission, 5  %. 

18.  Sold  M.  R.  Dunn,  on  account,  30  bu.  apples,  at  $1.  (Con.  O.  B.  Clinard.)  Received  from 
Chas.  B.  Winford,  Neodesha,  to  be  sold  on  his  account  and  risk:  80  dozen  eggs,  350  lbs.  live 
fowl.   Bought  of  Jas.  Welsh,  at  3/5,  300  bu.  potatoes,  at  70  cts.   Paid  freight,  $7.50;  dray  age,  $3. 

ly.  Sold  A.  B.  Wells,  for  cash:  250  lbs.  skim  cheese,  at  5  cts.;  200  lbs.  hams,  at  9^  cts.  Sold,  for 
cash,  to  J.  D.  Wuner,  Medicine  Lodge,  20  dozen  eggs,  at  18  cts.  (Con.  O.  B.  Clinard.)  Took 
on  our  account  and  risk,  Con.  from  C.  B.  McCormick,  Elk  Falls,  8  tubs  creamery  butter,  25, 
28,  27,  30,  26,  28,  24,  30  lbs.,  at  18  cts.     Paid  freight,  $2.25, 

20.  Sold  N.  D.  Bell,  Kingman,  for  cash:  100  lb.  hams,  at  10  cts.;  250  bu.  potatoes,  at  90  cts.:  Sold 
Rogers  &  Dunham,  Winfield,  on  account:  200  bu.  potatoes,  at  $1;  150  lbs.  live  turkeys,  at  8 
cts.  Shipped  Ward  &  Brown,  Wellington,  350  lbs.  live  fowl,  at  6^  cts.  (Con.  Chas.  B.  Win- 
ford.)  Paid  express  and  drayage,  $2.  "  Received  from  John  R.  Coutts,  Anthony,  to  be  sold 
on  his  account  and  risk,  200  lbs.  hams,  at  9  cts.     Received  cash  on  account  from  M.  R.  Dunn, 


21.  Sold  B.  C.  Gunn,  Arkansas  City,  on  account:  150  lbs.  skim  cheese,  at  5  cts.;  50  bu.  potatoes,  at 

90  cts.;  50  lbs.  live  turkeys,  at  7  cts.  Shipped  Grayson  &  Mills,  Atchison,  to  be  sold  on  our 
account  and  risk,  218  lbs.  creamery  butter,  at  18  cts.    (Con.  C.  B.  McCormick.) 

22.  Remitted  check  to  Jas.  Welsh  for  bill  of  the  18th.     Shipped  Shirley  &  Clover,  Topeka,  100  lbs. 

live  turkeys,  at  8  cts.  Paid  express  and  drayage,  $2.75.  Received  from  Grayson  &  Mills, 
check  in  payment  of  shipment  of  the  21st,  $43.60.  Received  check  from  Ward  &  Brown,  for 
shipment  of  the  20th,  $21. 

23.  Sold  Chas.  Coleman,  for  cash,  40  dozen  eggs,  at  18  cts.    (Con.  O.  B.  Clinard.)     Sold,  for  cash, 

50  lbs.  hams,  at  10|  cts.  (Con.  J.  R.  Coutts.)  Sold  Jas.  G.  Janney,  Winfield,  for  cash,  80 
dozen  eggs,  at  19  cts.  (Con.  C.  B.  Winford.)  Paid  expressage  and  drayage,  $1.25.  Ren- 
dered acct.  sales  to  O.  B.  Clinard  and  C.  B.  Winford,  reserving  5%  commission  and  paying 
proceeds  in  cash  by  remitting  check.  Sold)' for  cash,  to  Carter  &  Morris,  Winfield,  150  lbs. 
hams,  at  10  cts.  (Con.  J.  R.  Coutts.)  Paid  freigljit  in  cash  for  the  week,  $3.42.  (  $2  on  Con. 
C.  B.  McCormick,  $1.42  on  Con.  J.  R.  Coutts.)  Rendered  acct.  sales  to  J.  R.  Coutts  and  C. 
B.  McCormick;  commission,  5%.     Merchandise  inventory,  $200. 

Journalize,  foot,  and  close  accounts.     Find  present  worth  of  J.  F.  Dunn. 


Stevenson's  introductoky  bookkeeping.  121 


SET  r. 


MEMORANDA. 


October,  1896. 

1.  Student  decided  to  engage  in  general  merchandise  business;  investment  as  follows:   Cash, 

$2,500;  house  and  lot,  1215  Knowledge  St.,  $1,525,  assessed  value.  Rented  store,  and  paid 
rent  in  advance,  $50.     Bought  a  Day  Book,  Journal  and  Ledger  for  $4. 

2.  Bought  of  R.  Crew,  for  cash  :   200  yds.  linen  at  25  cts.;  350  yds.  calico  at  2  cts.;  190  yds.  all- 

wool  serge  at  50  cts.;  125  yds.  silk  at  75  cts.;  400  handkerchiefs,  lot  No.  1,  at  6  cts.,  230  hand- 
kerchiefs, lot  No.  2,  at  10  cts. ;  300  pairs  mittens  at  20  cts. ;  225  pairs  gloves  at  70  cts. ;  25 
suits  clothes  at  $16. 

3.  Sold  J.  Jenkins,  on  account :   Suit  clothes,  $20  ;  1  pair  mittens  at  35  cts. ;  2  handkerchiefs,  lot 

No.  2,  at  10  cts. 

4.  Sold  S.  Harvest,  for  cash  :   25  yds.  silk  at  $1.20  ;  3  pairs  gloves  at  $1.05  ;  5  handkerchiefs,  lot 

No.  2,  at  15  cts. 

5.  W.  Putnam  bought :   3  suits  clothes  at  $20 ;  20  yds.  calico  at  5  ots.;  10  yds.  linen  at  50  cts. 

Received  in  payment  his  note  at  30  days. 

6.  J.  Jenkins  paid  bill  of  the  3d.     Cash  sales,  $16.25.     Posted  all  accounts  at  close  of  day,  and 

decided  to  combine  Day  Book  and  Journal  next  week. 

8.  Bought  of  R.  P.  Adley,  on  my  note  at  4  months,  bill  of  goods  amounting  to  $624.     Paid  for 

advertising  in  Chronicle,  $1.50.  Deposited  $200  in  First  National  Bank.  Bought  horse  and 
wagon  for  $250, 

9.  Drew  out  for  private  use,  $4.60.     Saw  advertisement  in  the  Spokane  Daily  News  of  auction 

sale  of  L.  Shaw's  merchandise.  Went  to  the  sale  and  bought  a  bill  of  goods  for  $300,  cash. 
Paid  drayman  for  delivering  goods,  $1.50. 

10.  Paid  errand  boy  25  cts.     Discounted  W.  Putnam's  note  of  the  5th  at  First  National  Bank  at 

6%,  and  deposited  proceeds  to  your  credit. 

11.  Sold  L.  Swift :   6  prs.  mittens  at  35  cts.;  1  pr.  gloves,  36  cts.;  12  handkerchiefs,  lot  No.  2,  at 

15  cts.     Received  in  payment,  cash,  $1.50  ;  balance  on  account. 

12.  Paid  my  note  favor  R.  P.  Adley  of  the  8th,  less  discount  at  6  per  cent. 

13.  Bought  safe  for  office  of  Link  Furniture  Company  for  $175,  and  gave  in  payment  my  note  at 

30  days  for  $100  ;  balance  on  account.  Paid  drayman  for  delivering  it,  by  check  on  bank  for 
$2.50.  W.  Belden  has  decided  to  enter  into  partnership  with  me  next  week.  Closed  all 
books,  and  made  Balance  Sheet.  Inventory:  Merchandise,  $1,803.06;  expense,  rent,  one-half 
month,  $25  ;  real  estate,  $1,550  ;  horse  and  wagon,  $200  ;  office  fixtures,  $175. 

15.  W.  Belden  was  admitted  as  partner  into  the  business,  investing  an  amount  equal  to  one-half 

your  present  worth,  losses  and  gains  to  be  proportional  to  investment.  A  grocery  department 
was  to  be  kept  in  connection  with  the  dry-goods.  The  Day  Book-Journal  was  abolished, 
and  Cash  Book,  Journal  and  Sales  Book  substituted  for  it.  W.  Belden's  investment  was  as 
follows  :  Note  of  $200,  dated  January  10, 1896,  due  in  one  year  from  date,  against  W.  Rogers, 
interest,  6  per  cent,  (taken  at  present  worth);  merchandise,  $475  ;  balance  in  cash.  Bought 
groceries  of  A.  Rodman  &  Co.,  Kansas  City,  to  amount  of  $1,200,  giving  in  payment  firm's 
note  at  30  days  for  $950,  and  cash  for  balance. 

16.  Sold  S.  Harvest :   15  yds.  linen  at  50  cts.;  10  yds.  silk  at  $1.20  ;  3  prs.  mittens  at  35  cts.;  12 

handkerchiefs,  lot  No.  2,  at  15  cts.  Received  in  payment  draft  on  M.  Moses  at  10  days'  sight, 
which  he  accepted,  for  $12.50.     S.  Harvest  gave  his  note  for  balance,  due  in  90  days. 


122  Stevenson's  introductory  bookkeeping. 

17.  Lost  on  Sprague  St.,  $25.     Advertised  in  Daily  Chronicle  for  same,  paying  25  cts.  for  adver- 

tisement. Bought  carpet  for  office  of  Link  Furniture  Company  for  $10.50;  accepted  draft  for 
the  amount  at  10  days'  sight,  payable  to  A.  Madison,     Cash  sales,  $23.75. 

18.  Gave  to  missionary  cause,  $4.85.     The  $25  lost  is  returned;  gave  as  reward,  $1.25.     Paid  for 

stamps  and  paper,  $1.75.  Received  a  letter  from  D.  Dennis,  commission  merchant  at  Kansas 
City,  offering  to  sell  all  farm  products  on  commission  of  5%.     Accepted  the  offer. 

19.  Sold  S.  Swift:   20  lbs.  sugar  at  5  cts.;  10  lbs.  coffee  at  25  cts.;  3  lbs.  tea  at  75  cts.;  10  lbs. 

rice  at  5  cts. ;  3  cans  tomatoes  at  25  cts.  In  payment,  received  a  draft  on  A.  Harvey,  at  30 
days  after  date,  for  the  amount  of  the  bill.  Train  killed  horse,  and  completely  destroyed 
wagon.     Sue  railroad  for  damages,  $200. 

20.  Found  $40  on  the  floor  that  had  been  dropped  by  some  customer.   Received  from  T.  Murphy,  St. 

Louis,  an  offer  for  us  to  sell  sewing-machines  at  a  commission  of  6%.  Wrote  an  answer  accept- 
ing the  same.  Bought  for  cash:  100  bu.  potatoes  at  30  cts.;  125  bu.  apples  at  40  cts.;  200  lbs. 
butter  at  10  cts.  Shipped  the  same  to  D.  Dennis,  to  be  sold  on  our  account  and  risk.  Sold 
to  S.  Harvest:  4  cans  oysters  at  20  cts.;  3  doz.  oranges  at  25  cts.;  5  boxes  crackers  at  25 
cts.;  set  of  dishes,  101  pieces,  $20;  5  yds.  calico  at  5  cts.;  10  yds.  silk  at  $1.20.  Received 
in  payment  a  note,  indorsed  by  S.  Harvest,  on  P.  Powers,  dated  Jan.  4,  due  in  6  months,  dis- 
count 6%  off;  amount  of  note,  $30;  balance  on  account.  Posted  at  close  of  day  and  concluded 
that  Cash- Journal  would  require  less  work;  substitute  it  for  Cash  Book  and  Journal. 

22.  Paid  for  advertisement  in  paper,  $3.     Bought  chair  of  Link  Furniture  Company  for  office, 

giving  in  payment,  $6  cash;  balance,  $3,  on  account.  Received  from  T.  Murphy,  40  New 
Home  sewing-machines,  to  be  sold  on  his  account  and  risk.  Paid  charges  on  the  same, 
freight,  $20,  drayage,  $2.  Had  stock  of  goods  insured  in  the  German  Insurance  Company  for 
full  value,  considered  at  $3,125,  at  |%;  pay  cash  for  insurance. 

23.  The  owner  of  $40  came  in  inquiring  for  money  lost  on  the  20th.     We  returned  the  amount  to 

him,  and  he  gave  us  as  a  reward  $2.35.  Sold  4  machines,  T.  Murphy's  consignment,  at  $35, 
cash.  Received  damage  from  railroad  company  for  horse  and  wagon,  $200.  Bought  2  horses 
at  $50,  and  wagon,  .$45.  Paid  cash  for  same.  Received  acct.  sales  from  D.  Dennis,  remitting 
cash  for  net  proceeds,  $125.35.  Bought  merchandise  of  K.  Ball  &  Co.,  Chicago,  amounting 
to  $365.  Gave  in  payment  a  note  of  $200,  due  in  30  days,  and  cash  for  balance.  Sold  10 
machines,  T.  Murphy's  consignment,  at  $35,  to  R.  Leedy,  receiving  in  payment  his  note  at  30 
days  for  $150;  2  shares  of  Coenr  d'Alene  mining  stock  at  $100. 

24.  Sold  K.  Young:   1  bbl.  vinegar,  $6.20;  1  bbl.  sorghum,  $12.40;  5  cans  peaches  at  10  cts.;  100 

yds.  calico  at  5  cts.;  50  yds.  linen  at  50  cts.  Received  in  payment:  25  bu.  pototoes  at  30  cts., 
20  bu.  apples  at  50  cts.,  and  a  check  on  Cannon's  Bank  for  balance.  Bought  of  O.  Pond:  150 
dozen  eggs  at  10  cts.;  140  lbs.  cabbage  at  3  cts.;  40  bu.  beets  at  25  cts.;  30  bu.  onions  at  60 
cts.  Gave  in  payment  a  draft  on  ourselves  at  60  days'  sight  for  $20;  cash  for  balance.  Shipped 
the  same  to  Dennis  &  Co.,  K.  C,  to  be  sold  on  our  account  and  risk.  Cash  sales,  $125.  Fire 
occurred  in  our  block;  none  of  our  goods  were  burned,  but  part  were  badly  damaged  by 
water.  Made  a  claim  against  the  German  Insurance  Company  for  $500.  Stolen  from  the 
store  during  the  fire,  $25  worth  of  mdse.  and  $16  cash. 

25.  Sold  to  K.  Russel:   22  yds.  linen  at  50  cts.;  12  hdkfs.,  lot  No.  2,  at  15  cts.;  suit  clothes,  $20; 

1  pr.  gloves,  $1.05;  3  cans  tomatoes  at  10  cts.;  10  lbs.  dried  apples  at  8  cts.;  2  lbs.  cheese  at 
15  cts.;  1  lb.  candy,  25  cts.;  3  doz.  lemons  at  30  cts.  Received  in  payment  an  order  on  F. 
Glasgow  for  the  amount  of  the  bill.  Received  cash  dividend  on  2  shares  of  Coeur  d'Alene 
mining  stock,  $40.  Sold  16  sewing-machines,  T.  Murphy's  consignment,  at  $35.  Received 
in  payment  F.  Lake's  bill  of  exchange  on  B.  Worthington,  Sweet  Springs,  Colo.,  for  $200,  at 
\%  discount;  mortgage  on  house  and  lot.  No.  1621  Riverside  avenue,  $861.  Insurance  com- 
pany paid  damage,  $500.  Paid  firm's  taxes  on  real  estate,  $65.45.  Gave  to  the  church,  $10. 
A  friend  who  died  left  by  his  last  will  $3,690  to  the  firm  of  Student  &  Belden.  Received 
check  from  administrator  and  deposited  same  in  bank. 

26.  Sold  bill  of  exchange  on  B.  Worthington,  Sweet   Springs,  Colo.,  $200,  to  M.  Daisy,  at  \% 

premium.    Received  in  payment:  20  bu.  potatoes  at  30  cts.;  5  bu.  apples  at  50  cts.;  mortgage 


Stevenson's  introductory  bookkeeping.  123 

on  team  of  horses,  $40;  draft  on  J.  Smethers,  10  days  after  date,  for  $60,  and  balance  in  cash. 
Sold  10  sewing-machines,  Murphy's  consignment,  at  $35,  to  S.  Ott,  Hamilton.  Received  in 
payment :  4  books  at  $4  ;  an  order  on  J.  Fankhouser  for  $34  ;  3  shares  of  S.  F.  R.  R.  stock 
at  $100.  Made  out  account  sales  and  sent  same  to  T.  Murphy  for  consignment,  remitting  net 
proceeds,  deducting  commission,  cash,  $1,000;  our  note  for  three  months  for  balance. 

27.  Received  account  sales  from  D.  Dennis  of  shipment  No.  2,  receiving  net  proceeds  —  cash,  $25.20; 
balance,  $20,  on  his  account.  Sold  A.  Harvey:  100  lbs.  sugar  at  5  cts.;  100  lbs.  rice  at  6  cts.; 
50  lbs.  coffee  at  25  cts.;  set  of  dishes,  101  pieces,  $20;  2  dozen  bananas  at  40  cts.  Received 
cash,  $7;  balance  on  account.  Discount  S.  Harvest's  note  of  16th  at  the  bank,  at  6%,  receiv- 
'  ing  cash  for  the  proceeds.  Bought  stamps  and  paper,  $2.35.  Sold  one  share  railroad  stock, 
$200,  to  W.  Day,  receiving  in  payment  a  deed  for  two  acres  of  land  just  outside  the  corpora- 
tion, $150;  cash,  $25;  balance  on  account.  Sold  two  shares  Coeur  d'Alene  stock,  $300;  re- 
ceiving cash  payment.  F.  Glasgow  paid  order  on  him,  $36.40.  J.  Fankhouser  paid  $20  of 
order  on  him.     Clerk  hire  paid,  $100.     Close  books,  taking  an  inventory,  which  is  as  follows: 


Real  estate $3,120  00 

Horses  and  wagon 130  00 

Books 16  00 


Mdse $3,678  91 

Office  fixtures 193  50 

S.  F.  R.  R.  stock 150  00 


124  Stevenson's  intkoductory  bookkeeping. 


MEMORANDA.— SET  I^ 


February. 

1.  Adelaide  Staatz  began  a  business,  and  invested  cash,  $9,000. 

2.  Sent  cash  to  Spencer  &  Co.,  Wichita,  to  be  invested  in  real  estate, 

3.  Bought  200  bbls.  apples  in  the  Emporia  market  of  Cooper  &  Co.    Paid  cash,  $200;  gave  note 

at  30  days,  $400. 

4.  Shipped  100  bbls.  apples  to  Nash  &  Co.,  Topeka,  to  be  sold  on  our  account  and  risk.     Paid 

drayage  in  cash,  $5. 

5.  Received  of  Whealy  &  Co.,  Jacksonville,  Fla.,  200  boxes  oranges,  to  be  sold  on  their  account 

and  risk.     Paid  freight  in  cash,  $40. 

6.  Shipped  150  boxes  from  Whealey's  Con.  to  Goodman  &  Co.,  Wichita,  to  be  sold  on  our  ac- 

count and  risk.     Paid  drayage  by  a  barrel  of  apples,  $2. 
8.   Spencer  &  Co.  sent  us  a  deed  for  lot  105,  Topeka  ave.,  Wichita.     A  thief  stole  2  bbls.  of  apples 
and  3  boxes  of  oranges. 

10.  Sold  all  oranges  and  apples  on  hand  to  Whittington  &  Co.,  for  cash,  at  $10  per  bbl.  and  $8  per 

box. 

11.  Received  note  at  30  days  from  Goodman  &  Co.,  for  $200,  as  net  proceeds  of  shipment  of  the 

6ih,  and  discounted  same  at  bank  at  6%  for. '33  days. 

15.  Discounted  our  note  of  3d,  at  6%  for  20  days. 

16.  Sent  bank  draft  to  Whealy  &  Co.,  for  their  proceeds  on  Con.  of  the  5th  inst.     Our  commis- 

sion, 12^%  of  sales. 

17.  Sold  our  lot  in  Wichita  to  the  city  for  $5,000,  cash. 

Find  inventories  and  present  worth  of  Adelaide  Staatz. 


SET  J. 


SINGLE  ENTRY. 


Objects. —  ( 1 )  To  show  how  incomplete  a  method  of  bookkeeping  will  answer  the  demands  of 
certain  classes  of  business  men.  (2)  To  compare  the  two  systems.  (3)  To  show  how  a  set  of 
books  kept  by  Single  Entry  may  be  changed  to  Double  Entry.  (4)  To  illustrate  the  workings 
of  a  Book  and  Stationery  business. 


Instructions. — This  method  of  keeping  books  is  the  most  common ;  is  also  the  shorter.  How- 
ever, it  is  not  the  better  method,  and  to  its  use  may  be  attributed  many  of  the  business  failures 
which  statistics  tell  us  are  made  once  by  90  per  cent,  of  all  who  engage  in  business.  It  is  simply 
Doubly  Entry  cut  in  two  ;  i.  e.,  no  accounts  are  kept  with  property  or  causes  of  allowance.  There 
is  also  a  slight  change  in  the  forms  of  some  of  the  books.  The  Ledger  is  the  same  as  in  Double 
Entry  but  contains  accounts  with  persons  only.  In  this  set  we  will  keep  a  Day  Book,  Cash 
Book,  Blotter,  and  Ledger,  as  principal  books.  The  Day  Book  is  what  might  be  called  an 
Explanatory  Journal,  in  which  are  entered  all  transactions  that  cannot  be  disposed  of  in  the  other 
books  of  original  entry.  The  Blotter  corresponds  to  the  Sales  Book,  and  in  it  are  entered  all  sales. 
The  Cash  Book  takes  but  one  page  at  a  time.  The  left  column  is  for  Cash  Receipts  and  the  right 
for  Cash  Payments.  Observe  closely  the  model  forms  given.  A  Bill  Book,  Invoice  Book,  Check 
Book  and  Bank  Boo]?:  may  also  be  kept  as  auxiliary  books  in  Single  Entry,  but  may  be  dispensed 
with  in  this  set.  As  there  is  ho  attempt  to  have  equal  debits  and  credits,  a  trial  balance  cannot  be 
taken.  The  various  losses  and  gains  cannot  be  determined,  because  no  accounts  are  kept  with  the 
loss  and  gain  accounts.  The  present  worth  of  the  proprietor  can  be  found  by  finding  the  differ- 
ence between  the  resources  and  liabilities.  By  comparing  the  past  worth  with  the  present  worth, 
the  net  gain  or  net  loss  can  be  found.  The  Ledger  shows  the  proprietor's  worth  and  the  resources 
due  from  persons  on  account  and  the  liabilities  due  to  persons  on  account  only.  Other  resources 
or  liabilities  can  only  be  found  from  the  Cash  Book,  Bill  Book,  and  by  taking  inventories  of  all  the 
various  properties  owned. 

To  find  the  proprietor's  new  worth  in  Single  Entry,  find  the  difiPerence  between  his  resources 
and  liabilities.  The  net  loss  or  net  gain  is  then  found  by  taking  the  difference  between  the  new 
and  old  worths.     This  is  then  carried  to  the  debit  or  credit  side  of  the  proprietor's  account. 

Note. —  Set  J^  is  journalized  according  to  the  principles  for  Double  Entry  on  pages  128-130.  The  student 
should  compare  the  work  of  the  two  systems.     It  is  advisable  to  work  the  set  by  both  systems. 


126  Stevenson's  introductoky  bookkeeping. 


STEPS  TO  BE  TAKEN  IN  WRITINO  SET  J^ 


1.  Write  Books  op  Original  Entry — {a)  Journal-Day  Book;   (5)  Blotter;  (c)  Day  Book; 

{d)  Cash  Book. 

2.  RuiLE  AND  Balance  Cash  Book. 

3.  Post.     Debits  and  credits  relating  to  persons  only  are  posted. 

4.  Make  a  List  of  Resources  and  Liabilities. 

5.  Find  Present  Worth. 

6.  Find  Net  Loss  or  Net  Gain. 

7.  Carry  Net  Loss  or  Net  Gain  to  the  Proprietor's  Account. 


TO  CHANGE  FEOM  SINGLE  TO  DOUBLE  ENTRY. 


To  change  a  set  of  books  kept  by  Single  Entry  to  Double  Entry,  it  is  only  necessary  to  open 
accounts  with  all  resources  and  liabilities  in  the  Ledger,  and  carry  the  net  gain  or  net  loss  to  the 
proprietor's  account,  when  the  Ledger  will  be  found  to  be  in  balance.  If  a  Cash  account  is  not  kept, 
the  Ledger  will  be  out  of  balance  the  amount  of  cash  on  hand.  The  proprietor's  net  gain  or  net 
loss  is  usually  entered  in  the  Journal  before  being  carried  to  the  Ledger.  A  safe  plan  is  to  enter 
all  the  resources  and  liabilities  in  the  Journal,  together  with  their  difference,  which  is  the  proprie- 
tor's present  worth,  and  post  all  amounts  that  are  not  already  in  the  Ledger, 

The  inventories  are  found  in  Single  Entry  as  in  Double  Entry,  by  making  lists  of  all  proper- 
ties and  estimating  values. 


TO  CHANGE  FEOM  DOUBLE  TO  SINGLE  ENTRY. 


Rule  up  all  accounts  except  the  Personal,  and  make  such  records  as  will  enable  you  to  post 
debits  and  credits  relating  to  persons  only. 


STEVENSON  S    INTKODUCTORY    BOOKKEEPING. 

SINGLE-ENTRY  CASH  BOOK. 


127 


December  1,  189... 

Cash  Dr. 

Cash  Cr. 

L.P. 

106 

Student,  invested,                                                                       Cr. 

Bought  office  furniture, 

In  part  payment  of  bill  City  Book  Store, 

Cash  sales  as  per  blotter, 

— 2— 

Cash  sales  as  per  blotter, 

-4— 

Advertising  and  letter-heads, 
Cash  sales  as  per  blotter. 

2,000 

20 
75 

76 

48 

250 
289 

12 

40 

SINGLE-ENTEY  BLOTTl^.R. 


December  1,  189 


L.F. 

Cash  sales. 

20 

116 

— 2— 

D.  L.  Lucas,  Marysvillo, 

1  doz.  Gray's  Botany, 
10  Harkness's  Latin  Grammar, 

Dr. 
1.50 
1.00 

18 
10 

3  doz.  Reed  &  Kellogg's  English  Grammar, 

.95 

34 

20 

62 

20 

— 2— 

Cash  sales. 

75 

242 

L.  G.  Taylor,  Des  Moines, 
Stationery, 

-4- 

Cash  sales, 

160 
76 

25 

48 

SINGLE-ENTEY  JOUENAL  OE  DAY  BOOK. 

December  1,  189. 


L.P. 

Student, 

Cr. 

106 

Investment, 

2,300 

S.  C.  Williams, 

Cr. 

64 

Owe  him  on  account. 

450 

4 

Ginn  &  Co., 

Bought  bill  of  goods  on  account, 

Cr. 

100 

789 

60 

5 

American  Book  Company, 

Balance  bill  this  date, 

L.  G.  Taylor, 

Accepted  draft. 

Cr. 
Cr. 

97 

242 

377 
160 

25 

9 

A.  C.  McClurg&Co., 

Balance  bill  this  date, 
American  Book  Company, 

Bill  this  date, 
D.  L.  Lucas, 

Draft  favor  American  Book  Company, 
American  Book  Company, 

Payment  on  account—  draft  on  Lucas, 

Cr. 
Cr. 
Cr. 
Dr. 

76 

116 
92 

37 

20 

100 

129 

37 

20 

128 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


DOUBLE-ENTRY  JOUENAL.— SET  J\ 


Dec. 


Cash, 

Real  estate, 
Bills  receivable, 


Expense, 


Merchandise, 


Cash, 

D.  L.  Lucas, 

Cash, 

Merchandise, 

Expense, 

Cash, 

L.  G.  Taylor, 

Merchandise, 

Bills  Receivable, 
Bills  Receivable, 
Cash, 


S.  C.  Williams, 
Student, 

Cash, 

Bills  Payable, 
Cash, 

Merchandise, 

Merchandise, 

Merchandise, 

Ginn  &  Co., 

Cash, 

Merchandise, 

Merchandise, 

Bills  Payable, 

American  Book  Company, 


L.  G.  Taylor, 
Merchandise, 
Merchandise, 


Cash, 
Discount, 

Bills  Receivable, 

Cash, 

Cash, 


Bills  Receivable, 
Merchandise, 
Merchandise, 
D.  L.  Lucas, 


2,000 

2,500 

250 


250 


1,789 


62 

75 

789 

12 

76 

160 

697 

160 
123 
150 
122 

54 

165 

25 


40 


20 


60 


48 


25 


25 
60 


450 
4,300 

250 

1,500 

289 

20 
62 
75 

789 
12 
76 

160 

320 
377 

100 

123 

150 

123 

54 
165 

25 


40 


20 


60 


48 


25 


25 

60 


60 


STEVENSON  S    INTKODUCTORY    BOOKKEEPING. 


129 


Dec. 

8 

Ginn  &  Co., 

Cash, 

175 

175 

8 

Cash, 

Merchandise, 

123 

60 

123 

60 

9 

Merchandise, 

Cash, 

A.  C.  McClurg  &  Co., 

265 

63 

165 
100 

a3 

9 

Merchandise, 

D.  L.  Lucas, 

American  Book  Company, 

129 

37 
91 

20 
80 

9 

Cash, 

Merchandise, 

125 

75 

125 

75 

10 

Expense, 

Cash, 

56 

50 

56 

50 

10 

W.  W.  Gillette  &  Co., 

Merchandise, 

102 

102 

10 

Cash, 

Merchandise, 

79 

79 

11 

Cash, 

Expense, 

12 

50 

12 

50 

11 

Merchandise, 

Bills  Payable, 

325 

325 

11 

Cash, 

Merchandise, 

70 

80 

70 

80 

14 

Merchandise, 

Ginn  &  Co., 

78 

78 

U 

Eli  Payne, 

Merchandise, 

48 

48 

U 

Cash,                               ■' 

Merchandise, 

100 

100 

14 

Expense, 

Cash, 

20 

20 

16 

Merchandise, 

G.  &  C.  Merriam  &  Co., 

137 

137 

16 

Cash, 

Bills  Keceivable, 
Interest, 

251 

38 

250 

1 

38 

16 

Bills  Receivable,                    * 
Eli  Payne, 

24 

24 

16 

Expense, 

Cash, 

5 

5 

19 

D.  L.  Lucas, 

Merchandise, 

100 

100 

19 

Student, 

Cash, 

100 

100 

—9 


130 


STEVENSON  S  INTRODUCTORY  BOOKKEEPING. 


Dec. 


19 
19 
20 
20 
20 
23 
23 
23 
23 
26 

26 

26 
29 

29 

29 
31 
31 


Bills  Receivable, 

Caph, 

B.  P.  Sinclair, 

S.  C.  Williams, 

Expense, 

J.  R.  Moore, 

Expense, 

Bills  Receivable, 

Cash, 

Merchandise, 
American  Book  Company, 

J.  R.  Moore, 

Cash, 
Ginn  &  Co., 
Discount, 

Bills  Receivable, 
Cash, 

Merchandise, 
Bills  Payable, 

Cash, 

Discount, 
Cash, 
Discount, 


W.  W.  Gillette  &  Co., 

Merchandise, 

Merchandise, 

Cash, 

Cash, 

Merchandise, 

Merchandise, 

B.  F.  Sinclair, 


Cash, 

Expense, 

Cash, 


Bills  Receivable, 
Merchandise, 
Cash, 
Merchandise, 


102 
89 
50 

450 
275 

66 
8 

50 
210 
468 

23 

198 
325 

53 

112 
40 

78 


40 


20 
10 
40 

80 

91 
09 

73 


91 
09 

13 


50 


102 
89 
50 

450 

275 

66 

8 

50 

210 

66 
402 

24 
198 
324 

54 

112 

40 


40 


20 
10. 
40 


20 
60 


7S 

19 
81 


IS 


78 

H0S6 


50 

75 


Stevenson's  introductory  bookkeeping.  131 


MEMOEANDA.— SET  J^— SINGLE  ENTEY. 


December. 


1.  Student  began  a  book  and  stationery  business,  and  invested:   Cash  on  deposit  at  State  Bank, 

$2,000;  store  and  lot  on  Main  street,  valued  at  $2,500;  note  on  F.  E.  Lindiey,  at  30  days  from 
November  13  last,  for  $250,  with  interest.  He  owed  S.  0.  Williams,  on  account,  $450.  With- 
drew from  bank  by  check,  $100.  Bought  office  furniture  valued  at  $250,  and  paid  for  same 
by  giving  check  on  State  Bank.  Bought  from  City  Book  Store  Company,  Lawrence,  their 
stock  of  books  and  stationery,  valued  at  $1,789.40.  Gave  them  three  notes,  at  60,  90, 120  days 
respectively,  for  $500  each;  gave  check  for  balance.  Sold,  for  cash,  bill  of  goods  amounting 
to  $20. 

2.  Sold  D.  L.  Lucas,  Marysville,  on  account:   1  doz.  Gray's  Botany,  at  $1.50;  10  Harkness's  Latin 

Grammar,  at  $1;  3  doz.  Reed  &  Kellogg's  English  Grammar,  at  95  cts.  Cash  sales  for  to- 
day, $75. 

4.  Bought  from  Ginn  &  Co.,  Boston,  on  account:   Bill  of  books  amounting  to  $789.60.     Sold  L. 

G.  Taylor,  Des  Moines,  stationery  valued  at  $160.25,  for  which  you  draw  on  him  at  90  days' 
sight.  Paid  Rowland  Printing  Company,  cash,  $12,  for  advertising  and  letter-heads.  Cash 
sales,  $76.48. 

5.  Bought  of  American  Book  Company,  Chicago,  invoice  of  books  and   stationery,  $697,  for 

which  you  accept  their  draft  at  30  days  from  date  for  $320  ;  balance  on  account.  L.  G.  Taylor 
returned  draft  of  the  4th  accepted;  date  of  acceptance,  May  4.  Sold  H.  L.  Leonard,  To- 
peka:  44  doz.  Bailey's  Mental  Arithmetic,  at  20  cts.;  2  doz.  Steele's  Popular  Physics,  at  75  cts. 
Received  in  payment  T.  F.  Morrison's  acceptance  of  their  draft  at  30  days'  sight,  favor  our- 
selves.    Cash  sales,  $150. 

6.  Discounted  T.  F.  Morrison's  acceptance  at  bank  and  left  proceeds  to  your  credit.     Sold  J.  I. 

Wolf,  Sedalia:  3  doz.  Frye's  Complete  Geography,  at  90  cts.;  2  doz.  Frye's  Introductory 
Geography,  at  60  cts.;  18  Barnes's  U.  S.  History,  at  40  cts.  Received  in  payment  his  note  at 
30  days  for  same.     Cash  sales,  $165. 

8.  Received  cash  from  D.  L.  Lucas  on  account,  $25.     Gave  Ginn  &  Co.  a  check  for  $175,  to  apply 

on  account.  Sold  L.  G.Taylor:  1  doz.  White's  Money  and  Banking,  at  $1.20;  3  doz.  Barnes's 
Primary  U.  S.  History,  at  30  cts.;  2  doz.  Barnes's  U.  S.  History,  at  80  cts.;  1  doz.  Barnes's 
General  History,  at  $1.60;  stationery,  valued  at  $15.  Received  in  payment  his  check  on 
Walnut  Bank.     Cash  sales,  exclusive  of  above,  $45. 

9.  Bought  from  A.  C.  McClurg  &  Co.,  Boston:   Invoice  of  sundries,  amounting  to  $265.63;  gave 

in  payment  a  draft  on  First  National  Bank  of  Chicago,  bought  at  State  Bank  by  check, 
for  $165.63;  balance  on  account.  Bought  from  American  Book  Company  a  bill  of  goods 
amounting  to  $129.  Drew  a  draft  on  D.  L.  Lucas  for  the  balance  of  his  account,  and  remitted 
to  American  Book  Company,  to  apply  on  account.     Cash  sales  $126.75. 

10.  Bought  for  office  use,  stove  valued  at  $25;  7  tons  Osage  City  coal,  at  $4.50;  paid  for  same  by 

cash.  Sold  W.  W.  Gillette  &  Co.,  on  account:  3  doz.  Harkness's  Csesar,  at  $1.50;  3  doz. 
Lockwood's  Lessons,  at  60  cts.;  2  doz.  Genung's  Rhetoric,  at  $1.10.     Cash  sales,  $79. 

11.  Sold  office  chair  to  J.  W.  Williams,  for  $12.50,  and  received  payment  in  cash.     Bought  from 

D.  Appleton  &  Co.,  New  York,  bill  of  miscellaneous  books  amounting  to  $325;  accepted  their 
draft  at  30  days'  sight,  favor  of  W.  J.  Vincent,  in  payment.  Cash  sales,  $70.80. 
14.  Bought  of  Ginn  &  Co.,  on  account,  bill  of  books  amounting  to  $78.  Sold  Eli  Payne:  6  doz. 
Bailey's  Mental  Arithmetic,  at  20  cts.;  3  bound  volumes  magazines,  at  $4;  2  doz.  Frye's  Com- 
plete Geography,  at  90  cts.  Drew  draft  on  him  at  30  days'  sight  for  one-half  the  amount ; 
balance  on  account.     Cash  sales,  $100.     Paid  for  repairs  on  building, 


132  Stevenson's  introductory  bookkeeping. 

16.  Bought  of  G.  &  C.  Merriam  &  Co.,  Springfield,  Mass.,  on  account,  bill  of  books  and  stationery 
amounting  to  $187.  Received  from  F.  E.  Lindley,  check  on  Marine  Bank,  for  his  note  of 
November  13  and  interest  on  same.  Eli  Payne  returned  draft  of  14th,  accepted;  date  of 
acceptance,  May  15.  Paid  cash  for  necessary  expense  for  store,  $5.  Drew  draft  on  W.  W. 
Gillette  &  Co.  to  balance  account. 

19.  Sold  D.  L.  Lucas,  on*  account:   3  International  Dictionaries,  $15;  stationery  valued  at  $25;  6 

complete  sets  Butler's  Readers,  at  $5.  Student  took  $100  cash  from  the  drawer  for  private 
use.    W.  W.  Gillette  &  Co.  returned  draft  of  the  16th,  accepted.     Cash  sales,  $89. 

20.  Sold  B.  F.  Sinclair,  Sabetha:   1  doz.  Harkness's  Caesar,  at  $1.50;  2  doz.  Collar  &  Daniells's 

Beginning  Latin,  at  60  cts.;  18  Harkness's  Latin  Grammar,  at  $1 — for  which  drew  a  draft  at 
90  days'  sight.  Paid  S.  C.  Williams  in  full  of  account  by  check  on  State  Bank.  Necessary 
expenses  paid  in  cash,  $275. 

23.  Sold  J.  R.  Moore,  Seattle,  on  account:  1  doz.  Gray's  Botany,  at  $1.50:  2  doz.  Reed  &  Kellogg  s 
Grammar,  at  95  cts.;  1  doz.  Lockwood's  Lessons  in  English,  at  60  cts.;  1  doz.  Genung's  Out- 
lines in  Rhetoric,  at  $1.10;  stationery,  $5.  Used  for  store,  books  and  stationery  valued  at 
$8.10.     B.  F.  Sinclair  returned  draft  of  20th,  accepted.     Cash  sales,  $210. 

26.  Drew  a  sight-draft  on  J.  R.  Moore,  for  balance  of  his  account,  favor  American  Book  Company, 
and  remitted  it  to  the  latter  with  check  to  balance  account.  Remitted  Eli  Payne's  acceptance 
of  15th  to  Ginn  &  Co.  on  account,  less  discount.     Cash  sales,  $198.73. 

29.  Paid  acceptance  of  the  11th,  favor  W.  J.  Vincent,  less  discount,  by  check.  Received  cash  for 
J.  I.  Wolf's  note  of  6th,  less  discount.     Cash  sales,  $112.13. 

51.   Paid  J.  C.  Ayres,  check,  salary  for  month,  $40.     Cash  sales,  $78.50. 

Inventory:  Real  estate,  $2,525;  fixtures,  $150;  mdse.,  $2,120. 


Stevenson's  introductory  BooKKEEPiNa.  133 


QUESTIONS  ON  SINGLE  ENTEY. 


1.  What  is  Single-Entry  Bookkeeping  ? 

2.  In  what  ways  does  it  differ  from  Double  Entry? 

3.  What  accounts  are  kept  in  the  Single-Entry  Ledger  f 

4.  Why  is  Single  Entry  used  as  much  as  it  is  ? 

5.  What  books  are  kept  in  Single-Entry  Bookkeeping  ? 

6.  In  strict  Single  Entry,  can  Merchandise,  Expense,  and  other  loss  and  gain  accounts  be  kept  ? 

7.  How  is  the  Journal  entry  made  in  Single  Entry? 

8.  How  is  the  Posting  done  in  Single  Entry. 

9.  Does  the  Single-Entry  Ledger  balance  ? 

10.  Can  you  give  any  reason  why  Single  Entry  should  be  so  called  ? 

11.  Is  there  any  difference  in  the  ruling  of  a  Single-  and  Double-Entry  Ledger  ? 

12.  What  entry  would  you  make  in  Single  Entry  if  you  bought  Merchandise  for  $175  and  paid  cash  ? 

13.  Can  you  tell  by  Single  Entry  how  much  you  have  gained  on  Merchandise  ? 

14.  Give  all  the  facts  concerning  a  business  that  you  think  you  could  determine  from  a  set  of  Single-Entry  Books. 

15.  Why  is  a  Day  Book  of  more  use  in  Single  than  in  Double  Entry? 

16.  How  would  you  close  a  Single-Entry  Ledger  ? 

17.  How  can  you  find  the  Present  Worth  in  Single  Entry? 

18.  How  can  you  find  the  Net  Gain  or  Net  Loss  ? 

19.  What  part  of  your  resources  is  shown  by  a  Single-Entry  Ledger  ? 

20.  In  what  way  must  the  others  be  found  ? 

21.  What  part  of  your  Liabilities  is  shown  by  a  Single-Entry  Ledger  ? 

22.  How  can  you  find  Liabilities  not  shown  by  the  Ledger  ? 

23.  How  does  a  Single-Entry  Cash  Book  differ  from  a  Double  Entry? 

24.  How  may  Single-Entry  Books  be  changed  to  Double  Entry? 

25.  How  may  Double-Entry  Books  be  changed  to  Single  Entry? 
86,   What  advantages  has  Single  Entry? 

27.  What  disadvantages  has  Single  Entry? 

28.  To  which  side  of  the  Proprietor's  account  is  the  net  loss  carried  in  Single  Entry  ?    The  net  gain  ? 


134  Stevenson's  introductory  bookkeeping. 


SET  J\ 


SINGLE  ENTRY.— MEMORANDA. 


January. 

1.  Began  a  poultry  business  with  $800  cash.    Had  poultry  on  hand  worth  $200.     Had  on  hand 

30  bu.  of  feed,  worth  $10,  and  coops,  worth  $25. 

2.  Bought  of  J.  L.  Pickens,  for  cash:   2  doz.  Bantams  at  $3.50;   5  doz.  Plymouth  Rocks  at  $4; 

1  doz.  Guineas,  at  $3.     Paid  for  fencing  yards,  $25  in  cash. 

3.  Bought  of  R.  Baker:   3  doz.  Buff  Cochins  at  $4;   3  doz.  turkeys  at  $6;   1  doz.  ducks  at  $5. 

Gave  in  payment  note  for  $10,  at  10  days;  balance  on  account.  Sold  W.  H.  Simpson:  2  doz" 
turkey  eggs  at  50  cts.;  3  doz.  Plymouth  Rock  eggs  at  $1;  2  doz.  Buff  Cochin  eggs  at  75  cts- 
Received  in  payment:   1  doz.  Leghorns  at  $3.50;  balance  in  cash. 

4.  Killed  4  chickens  for  family  use,  worth  25  cts.  each.     Bought  of  E.  Costlett  &  Co.,  on  our 

note  at  15  days,  an  incubator,  for  $80.  Paid  James  Goodman  for  buildings  which  were  com- 
pleted to-day,  $200  in  cash, 

5.  Sold  6  doz.  dressed  chickens  at  $6,  receiving  cash.     On  account  of  an  accident,  four  of  the 

Plymouth  Rocks  were  killed. 

6.  Bought  of  Charles  Thomas:   3  doz.  Shanghais  at  $5;   2  doz.  Black  Spanish  at  $3.50;   1  doz- 

Pekin  ducks  at  $6.     Gave  in  payment  our  note  at  30  days  for  $20;  balance  in  cash. 
9.   Paid  $5  cash  for  lumber  to  repair  poultry  house.     Used  3  doz.  eggs,  at  25  cts.,  for  family  use. 
Paid  cash  for  chicken  feed,  $5. 

10.  R.  Baker's  draft  on  us  at  10  days'   sight  for  balance  of  his  account,  accepted.     Sold  A.  W. 

Gleason  on  account :  1  doz.  Buff  Cochins  at  $5  ;  2  doz.  Plymouth  Rocks  at  $5  ;  2  doz.  Shanghai 
eggs  at  $1. 

11.  Sold  R.  Baker  :   1  doz.  Black  Spanish  at  $4.50 ;  1  doz.  Guineas  at  $3  ;  1  doz.  Bantams  at  $3  ; 

^  doz,  Pekin  ducks  at  $7.50 ;  2  doz.  turkeys  at  $7.25.  Received  in  payment  A.  W.  Gleason's 
note  at  20  days,  dated  January  1,  for  $10,  and  drawing  interest  at  10%  ;  cash,  $5  ;  balance  on 
account. 

12.  Our  draft  at  20  days'  sight  on  A.  W.Gleason  to  balance  his  account,  accepted.     Bought  of  J.  L- 

Pickens  :  2  doz.  bronze  turkeys  at  $7.50 ;  3  doz.  Houdans  at  $3  ;  4  doz.  Plymouth  Rocks  at 
$4.  Gave  in  payment  sight-draft  of  A.  W.  Gleason,  $17,  received  to-day;  our  note  at  30  days 
for  $10  ;  balance  cash. 

16.  Paid  our  note  of  the  3d,  now  due,  in  cash.     Sold  20  doz.  eggs  at  20  cts.,  for  cash. 

17.  Hired  F.  T.  Wilson  to  repair  poultry  house  and  fences.     His  charges  were  $5.     Gave  in  pay- 

ment f  doz.  Pekin  ducks  at  $7.50  ;  5  doz.  eggs  at  25  cts. 

18.  Discounted  all  notes  outstanding.     Paid  proceeds  in  cash. 

19.  Thieves  stole,  last  night,  |  doz.  Leghorns  and  14  bronze  turkeys.     Sold  R.  Baker,  on  account: 

^  doz.  bronze  turkeys  at  $9;  2  doz.  Houdans  at  $4. 

I'^ehruary. 

5.  Paid  for  drayage  $10,  in  cash.     Sold  for  cash  2  doz.  dressed  ducks  at  $6.50 ;  1  doz.  dressed 

turkeys  at  $8.50. 

6.  Eight  turkeys  died.     Sold  all  turkeys  on  hand  for  $10. 

.        .        .        .        .    $5 
70 


Inventory.— Poultry,     . 

.      $250 

Feed, 

Poultry  houses, 

200 

Incubator, 

Coops  and  fences, 

35 

GENERAL  REVIEW. 


SET  K. 

(Enter  in  Day  Book,  Journal,  and  Ledger. 


January^  189 

1.  Ira  D.  Graham  began  business  this  day,  and  invested  cash,  $4,000.     Bought  Day  Book,  Jour- 

nal and  Ledger  for  use  of  business,  paying  cash,  $15. 

2.  Bought  mdse.  of  Chas.  S.  Davis,  invoiced  at  $2,000.    Terms,  30  days.    Sold  mdse.  to  Thomas  E. 

Will  on  account,  $900.    Employed  Student  as  bookkeeper  at  $30  per  month.    Cash  sales,  $100. 

3.  Sold  mdse.  to  Edward  W.  Bemis  for  $500.     Received  from  him  in  settlement  his  note  at  60 

days,  with  interest  at  10%. 

4.  Bought  of  L.  L.  L.  Hanks,  terms,  note  at  4  months,  mdse.  invoiced  at  $4,000.     Gave  note  for 

amount  of  bill,  with  interest  at  10%.     Cash  sales,  $125. 

5.  Bought  of  Smith  Bros.,  stock-brokers,  10  shares  Mo.  Pac.  R.  R.  stock,  at  $38.     Paid  cash  bro- 

kerage ^%  on  par  value  of  $100  per  share. 
(B.   Received  from  Thos.  E.  Will,  $500  in  cash,  and  his  note  at  30  days  for  balance,  on  bill  of  the  2d. 

Sold  W.  A.  Cain,  for  cash,  4  shares  Mo.  Pac.  R.  R.  stock  at  $49.     A.  E.  Lockhart  is  employed 

as  clerk,  at  $40  per  month. 
7.   Bought  mdse.  of  Strauss  &  Co.,  invoiced  at  $125,  giving  them  in  payment  two  shares  Mo.  Pac. 

R.  R.  stock. 
9.    Paid  postage,  $6;  gas  bill,  $15;  stationery,  $5.     Sold  mdse    to  O.  E.  Olin,  invoiced  at  $400. 

Terms,  10/10,  5/20,  2/30,  n/60. 

10.  Sold  mdse.  to  A.  S.  Olin,  invoiced  at  $3,000.     Received  his  note  at  10  days  for  $500,  and  bal- 

ance in  cash. 

11.  Sold  mdse.  to  A.  S.  Packard,  invoiced  at  $600,  on  account.     Sold  O.  M.  Powers,  on  his  accept- 

ance at  10  days,  mdse.  invoiced  at  $700. 

12.  The  firm  assumes  a  debt  of  $50,  due  to  C.  A.  Boyles  by  Student,  the  bookkeeper,  and  it  is 

agreed  that  $10  a  month  will  be  deducted  from  his  salary  until  claim  is  paid. 

13.  Received  a  bank  draft  from  O.  E.  Olin  in  payment  of  bill  of  the  9th.     Cash  sales,  $200. 

14.  A.  E.  Lockhart  falls  heir  to  $5,000,  and  is  admitted  as  an  equal  partner,  to  share  equally  in  the 

entire  assets  of  the  business,  on  payment  of  $4,500,  cash. 

16.  Received  of  A.  S.  Packard,  to  balance  his  account,  a  draft  at  10  days'  sight  on  Wm.  Clarke, 

which  has  been  accepted. 

17.  Bought  a  Cash  Book  for  $2.     Bookkeeper  instructed  to  keep  Cash  Book,  Itemized  Journal, 

and  Ledger,  henceforth.     Cash  sales,  $75. 

(l^   Shipped  to  Hardcastle  &  Kenyon,  Parsons,  to  be  sold  on  our  account  and  risk,  mdse.  invoiced 
at  $1,000.     Paid  freight,  etc.,  on  same,  $30. 

19.   Discounted  note  received  of  Thos.  E.  Will  on  the  6th,  at  the  bank,  receiving  credit  for  the  pro- 
ceeds. 

(135) 


136  Stevenson's  introductory  bookkeeping. 

20.  Keceived  from  S.  D.  Hoaglin,  Holton,  to  be  sold  on  joint  account  and  risk,  we  taking  one- 

quarter  risk,  mdse.  invoiced  at  $3,000.     Paid  shipping  expenses,  freight,  drayage,  etc.,  $90. 

21.  Sold  the  goods  belonging  to  Hoaglin's  Con.  for  $5,000,  cash.     Retained  our  one-fourth  net 

profit  and  sent  a  bank  draft  for  proceeds. 

23.  Received  cash  of  A.  S.  Olin,  for  his  note  of  the  10th  inst.     Deposited  $500  in  bank. 

24.  Received  cash  for  Powers's  acceptance  of  the  11th,  due  to-day. 

25.  Each  of  the  proprietors  withdrew  $100  for  private  use.     Loaned  M.  E.  Beach  $400,  by  check. 

26.  Exchanged  notes  with  M.  A.  Whitney  for  accommodation.     Both  notes  at  90  days  and  for  $800, 

with  interest  at  10%. 

27.  Discounted  at  the  bank  the  note  received  from  Edward  W.  Bemis  on  the  3d  inst.,  and  received 

credit  for  the  proceeds. 

28.  Discounted  at  the  bank  our  note  to  L.  L.  L.  Hanks  of  the  4th  inst.,  paying  the  proceeds  in  cash. 

30.  Received  cash  of  Wm,  Clarke  for  his  acceptance  due  to-day. 

31.  Paid  Student's  salary,  and  a  bonus  of  $25  for  superior  services.     Received  of  Hardcastle  & 

Kenyon,  Parsons,  an  account  sales  of  the  merchandise  shipped  them  on  the  18th,  which 
showed  our  net  proceeds  to  be  $1,400,  for  which  they  sent  us  a  draft  at  60  days  on  Peter  Par- 
ley, which  Parley  accepted.  Discounted  Parley's  acceptance  at  the  bank,  receiving  credit  for 
the  proceeds. 

Inventory. —  Four  shares  Mo.  Pac.  R.  R.  stock,  at  $60.    Merchandise  inventory,  $500. 
Post,  close  Ledger,  and  find  worths  of  the  proprietors,  which  must  be  equal,  by  the  terms  of  the  partnership 
agreement. 


SET  L. 


February. 

1.  Continued  the  preceding  business,  using  Sales  Book,  Invoice  Book,  Cash  Book,  Journal,  and 

Ledger.  On  account  of  superior  business  ability.  Student  was  admitted  as  a  partner,  with 
a  one-eighth  interest  in  the  gains ;  the  remaining  seven-eighths  was  equally  divided  between 
the  other  two.  Employed  several  clerks,  and  an  assistant  bookkeeper,  at  $30  per  month. 
Bought  a  bill  of  merchandise,  $500,  of  Martin  &  Martin,  on  account,  subject  to  draft. 

2.  Accepted  a  draft  drawn  on  us  by  Martin  &  Martin,  at  30  days'  sight,  in  favor  of  Calvin  Hood, 

for  $500.  Received  a  draft  for  $400  from  M.  E.  Beach  on  account,  drawn  on  John  Stewart, 
at  10  days'  sight. 

3.  Bought  mdse.  on  account,  of  H.  M.  Cottrell,  $600  ;  Albert  S.  Hitchcock,  $900  ;  Julius  T.  Wil- 

lard,  $1,000  ;  Geo.  F.  Weida,  $500.     Cash  sales,  $300. 

4.  Stewart  accepted  draft  received  on  the  2d.     Accepted  at  30  days'  sight  a  draft  for  $500,  drawn 

by  Geo.  F.  Weida,  in  favor  of  Ralph  Harrison. 

6.  Sold  mdse.  on  account,  to  S.  H.  Dodge,  $100 ;  J.  S.  Winans,  $200 ;  J.  S.  McGrath,  $150 ; 

J.  H.  Ritchie,  $300.     Deposited  in  bank,  $600. 

7.  Drew  a  draft  at  10  days  from  date  on  S.  H.  Dodge,  for  $100,  and  sent  same,  less  13  days'  dis- 

count, to  Julius  T.  Willard,  to  apply  on  account. 

8.  Drew  a  draft  at  sight  on  J.  S.  Winane  for  $200,  favor  of  Julius  T.  Willard,  and  sent  same,  and 

a  check  for  $400,  to  apply  on  account.     Cash  sales,  $400. 

9.  Drew  a  draft  on  J.  S.  McGrath  at  10  days'  sight,  favor  of  H.  M.  Cottrell,  for  $250,  and  sent  to 

Cottrell  to  apply  on  account. 

10.   Sold  mdse.  to  W.  A.  Van  Voris,  invoiced  at  $1,000.     Terms,  10/20,  5/30.     Cash  sales,  $600. 
Cash  purchases,  auction  stock  mdse.. 


Stevenson's  introductory  bookkeeping.  137 

11.  J.  S.  McGrath  refused  to  pay  draft  drawn  on  him  by  us  on  the  9th,  favor  of  H.  M.  Cottrell. 
Paid  protest  fees,  $1.25. 

13.  Cash  sales,  $600.  Sold  John  D.  Walters  mdse.  invoiced  at  $900.  He  gave  us  an  order  on 
Albert  S.  Hichcock  for  $900,  and  we  gave  it  to  Hichcock  to  apply  on  account.  Purchased 
mdse.  for  cash,  $700.     Sold  mdse.  to  J.  M.  Winslow,  on  account,  $500. 

15.  Discounted  for  J.  H.  Ritchie,  J.  D.  Barnett's  note  in  his  favor,  dated  January  15,  at  six 

months,  for  $700.     Gave  him  the  proceeds  in  mdse.,  less  amount  due  us  on  account. 

16.  Cash  sales,  $500.     Paid  clerks'  salaries  by  checks,  $125. 

17.  Letter  from  J.  S.  McGrath  explained  cause  of  refusal  to  accept  draft.     He  inclosed  a  certified 

check  in  our  favor  for  the  amount  due  us. 

20.  Paid  bill  of  H.  M.  Cottrell,  of  the  3d  inst.,  less  2  per  cent.     Paid  by  check.     Paid  for  new 

sign  for  store,  $10. 

21.  Sold  Edward  Elias  mdse.  invoiced  at  $300,  and  drew  on  him  at  30  days  from  date. 

22.  Discounted  our  acceptance  of  the  2d  inst.  favor  of  Calvin  Hood.     Paid  bookkeeper's  salary 

one  month. 

23.  Received  cash  of  W.  A.  Van  Voris,  for  bill  of  the  10th  inst.     J.  M.  Winslow  failed,  and  we  ac- 

cepted 40  cts.  on  the  dollar  to  settle  his  account. 

24.  Loaned  L.  H.  Armstrong  $1,000,  on  demand,  at  8  per  cent.,  to  secure  which  he  deposited  with 

us,  as  collateral  security,  28  shares  A.  T.  &  S.  F.  R.  R.  stock. 

25.  Discounted,  at  5  per  cent.,  M.  A.  Whitney's  note  of  January  26,  at  the  bank,  receiving  one- 

half  in  cash,  and  credit  for  one-half. 

27.  Paid  petty  expenses,  $17.     Sold  Grant  Van  Hoose  mdse.  billed  at  $900.     Terms,  2/30,  n/60. 

28.  Received  from  Edward  Elias  his  acceptance  of  our  draft  of  the  21st  inst.,  at  30  days  from 

date.     Discounted  the  draft  at  bank,  and  received  credit  for  the  proceeds 
Mdse.  inventory,  $1,800. 
Find  worths  of  proprietors. 


SET  M. 

(Continue  the  preceding  set.) 

March. 

1.  Student  and  Graham  went  to  New  York  city.     Took  cash,  $1,000. 

2.  Cash  sales,  $400.     Sold  Ulrick  Jarrett  mdse.  billed  at  $150.     Terms,  30  days. 

3.  Received  of  Grant  Van  Hoose  bank  draft  for  $600,  and  check  for  balance,  on  bill  of  27th  ult. 

Cash  sales,  $400.     Deposited,  $1,000. 

4.  Paid  for  advertising,  $15.     Paid  by  check  a  draft  drawn  by  Student,  New  York  city,  favor  of  a 

New  York  bank,  and  presented  by  home  bank,  $600. 

6.  A.  E.  Lockhart  withdrew,  for  private  expenses,  $25.     Received  frpm  New  York  bill  of  goods 

sent  by  freight  on  the  4th  inst.     Total,  $2,000. 

7.  Received  of  L.  H.  Armstrong  the  amount  loaned  him  on  the  24th  ult,,  and  interest  to  date,  and 

we  returned  the  collateral  deposited  with  us  as  security. 

8.  Ulrick  Jarrett  notified  us  of  the  formation  of  a  partnership  with  W.  J.  McCarty,  and  that  the 

firm  will  be  responsible  for  the  amount  due  us  from  him  on  account. 

9.  Paid  our  acceptance  of  Feb.  4,  favor  of  Geo.  F.  Weida.     Paid  freight  in  cash,  $65.     Cash 

sales,  $300. 

10.  Drew  a  draft  at  30  days'  sight  on  Jarrett  &  McCarty  for  the  goods  sold  Jarrett  on  the  2d  inst. 

11.  Shipped  to  Stuckey,  Clarke,  Whitbeck  &  Co.,  Olpe,  to  be  sold  on  our  account  and  risk,  mdse. 

invoiced  at 


138  Stevenson's  introductory  bookkeeping. 

13.  Received  from  Kretsinger,  Leatherwood  &  Co.,  Fort  Scott,  to  be  sold  on  joint  account  and 

risk,  we  taking  one-half  risk,  mdse.  invoiced  at  $900. 

14.  Sold  to  A.  S.  Newman  &  Co.,  from  Kretsinger,  Leatherwood  &  Co.'s  consignment,  mdse.,  for 

$700,  cash. 

15.  Sold  remainder  of  goods  from  Kretsinger,  Leatherwood  &  Co.'s  consignment  to  A.  J.  Wall,  at 

10  days,  for  $600.     Cash  sales,  $500.     Paid  for  stamps,  $4 ;  office  fixtures,  $24. 

17.  Received  from  Stuckey,  Clarke,  Whitbeck  &  Co.  an  account  sales,  showing  our  proceeds  to  be 

$1,500,  subject  to  draft  in  10  days. 

18.  Rendered  Kretsinger,  Leatherwood  &  Co.  an  account  sales.     Sent  them  a  check  for  their  share 

of  the  profits, 

20.  Sold  mdse,  invoiced  at  $2,000,  taking  in  payment  a  first  mortgage  on  house  and  lot.  Commer- 

cial street,  No.  212, 

21.  Bought  of  Z.  Abbott,  a  bill  of  goods  for  $2,000;  terms,  10/10,  2/20,  n/60. 

22.  Sold  mdse.  on  account:   To  Frank  Agrelius,  $800;   H.  M.  Means,  $700;   G.  N.  Witt,  $400. 

Cash  sales,  $400. 

23.  Drew  drafts  at  30  days'  sight  on  Frank  Agrelius  and  H.  M.  Means  for  the  balances  due  on 

their  accounts,  and  sent  same  to  Z.  Abbott  to  apply  on  account,  less  33  days'  discount. 
25,   Received  check  from  G.  N,  Witt  to  balance  his  account.     Sent  Z.  Abbott  check  for  balance 
due  on  account, 

27.  Drew  a  sight-draft  on  Stuckey,  Clarke,  Whitbeck  &  Co.,  for  the  amoant  due  us,  as  per  account 

sales  received  on  the  17th  inst.,  and  cashed  same  at  the  bank. 

28.  Received  cash  of  A.  J.  Wall  in  full  of  account.     Cash  sales,  $700.      Paid  clerks  and  book- 

keeper by  checks,  $300. 

29.  By  the  payment  of  $500  cash,  we  received  a  deed  for  the  house  and  lot,  No.  212  Commercial 

street,  on  which  we  held  a  mortgage  for  $2,000. 
31.   Took  inventories  :   Merchandise,  $5,000  ;  real  estate,  $3,00Q 
Find  worths  of  proprietora 


EXAMINATION  TESTS. 


1.  Define  Inventories,  and  explain  how  they  are  usually  taken. 

2.  Explain  the  circumstances  under  which  the  Inventory  must  be  estimated  at  (a)  a  present  selling  price ;  (6)  a 

present  buying  or  cost  price ;  (c)  a  past  cost  price  ;  (d)  a  future  estimate  of  value. 

3.  Which  side  of  John  Smith's  account  is  the  larger  when  it  shows  (a)  a  resource  ?  (6)  a  loss?    (e)  Explain  both 

conditions. 

4.  The  Resource  and  Liability  statement  of  a  firm  shows  the  following :   Bills  Rec.  Dr.,  $3,428 ;  Cash  Dr.,  $7,166.76 ; 

Bills  Pay.  Cr.,  $7,000.65;  Mdse.  Dr.,  $6,707.18;  Arnold  &  Co.  Cr.,  $1,460;  M.  Walters  Dr.,  $1,967;  Expense 
Dr.,  $75 ;  J.  Locke  Dr.,  $300 ;  Feldman  &  Co.  Cr.,  $3,245  ;  J.  Gross  Dr.,  $384 ;  Gray  &  Jenkins  Dr.,  $8  ;  Cook 
&  Co.  Cr.,  $1,260;  Baker  &  Co.  Dr.,  $1,313;  Yourself  (Proprietor)  Cr.,  $5,588.86;  H.  C.  Walker  (Proprietor) 
Cr.,  $2,794.43.  It  is  agreed  to  dissolve  partnership.  Yourself  to  take  H.  C.  Walker's  note  for  $2,000  and  the 
remainder  of  your  worth  in  cash,  (a)  Make  H.  C.  Walker's  Journal  entry  if  he  retains  the  books  of  the  old 
firm.  (6)  Make  your  Journal  entry  if  you  retain  the  books  of  the  old  firm,  (c)  Arrange  the  foregoing  in  the 
form  of  a  Statement  of  Resources  and  Liabilities. 


1.  Define  (a)  Bills  Payable  ;  (6)  Interest ;  (e)  Discount ;  (d)  Days  of  Grace. 

2.  Text-books  frequently  define  interest  as  ' '  Money  paid  for  the  use  of  money."    Show  that  the  definition  is  untrue. 

3.  Name  six  different  forms  of  cash. 

4.  Mention  the  circumstances  under  which  a  Ledger  may  balance  and  yet  be  wrong. 

5.  Enter  the  following  in  Journal-Day  Book,  post  items  necessary  to  find  worth  of  proprietors,  and  make  State- 

ment of  Resources  and  Liabilities : 

Sept.  1,  1896.  Smith  and  Brown  form  a  partnership.  By  agreement,  Smith  is  to  furnish  the  experience  and  Brown 
the  capital,  and  they  are  to  share  equally  in  the  losses  and  gains.  Brown  invested  building  and  fixtures  worth 
$2,000;  mdse.,  $1,000;  Owens  owes  on  account,  $800;  Bills  Receivable,  note  of  Peters  given  August  1,  at  30 
days,  for  $700  ;  petty  amounts  due  from  various  persons,  $400.  Brown  owes  Pall  &  Co.  on  account,  $800,  and 
has  outstanding  a  note  for  $500. 

Sept.  2.  Received  from  Owens,  in  full  of  account,  a  draft  at  10  days'  sight  on  Cooper  &  Co.  for  $800.  Draft  accepted 
by  Cooper  &  Co. 

Sept.  3.   Collected  on  petty  accounts,  $250. 

Sept.  4.   Sent  Cooper  &  Co.'s  acceptance  to  Pall  &  Co.,  in  full  of  account. 

Sept.  5.   Smith  withdrew  for  private  use,  $100. 

Sept.  6.  Received  from  Bailey  &  Co.,  to  be  sold  on  their  account  and  risk,  two  car-loads  of  potatoes.  Paid  freight 
by  giving  R.  R.  agent  100  bushels  potatoes,  at  75  cents. 

Sept.  8.   Sold  potatoes  from  Bailey  &  Co.'s  consignment  for  cash,  $200. 

Sept.  9.  Redeemed  our  note  of  $500,  by  giving  mdse.  invoiced  at  $400,  and  potatoes  from  Bailey  &  Co.'s  consign- 
ment invoiced  at  $100. 

Sept.  10.   Gave  Peters's  note  in  exchange  for  mdse.  invoiced  at  $900. 

Sept.  11.   Sold  mdse.  for  $1,000  cash,  and  potatoes  from  Bailey  &  Co.'s  consignment  for  a  demand  note  for  $300. 

Sept.  12.   Made  an  account  sales  to  Bailey  &  Co.,  sending  their  proceeds  in  cash.     Our  commission,  10%  on  sales. 

Sept.  13.   Sold  uncollected  petty  accounts  to  A.  Collector,  for  $5  cash. 

Sept.  15.   Inventory. —  Mdse.,  $200;  building  and  fixtures,  $3,000.  *■ 

O. 

1.  Define  (a)  Bookkeeping ;  (6)  Accounts;  (e)  Resource;  {d)  Liability;  (e)  Loss;  (/)  Gain. 

2.  Which  side  of  John  Smith's  account  is  the  larger  when  it  shows  a  liability?    Which  side  is  the  larger  when  it 

shows  a  gain  ?    Explain  both  conditions. 

3.  Which  side  of  Bills  Payable  account  must  be  the  greater  if  there  is  any  difference  ?    Explain  why. 

(139) 


140  Stevenson's  introductory  bookkeeping. 

4.   Enter  the  following  in  Journal,  and  poet  only  those  items  necessary  to  find  Present  Worth  of  yourself : 

You  began  business  July  1,  with  the  following  resources  and  liabilities :  Due  from  District  No.  1,  for  4  mos. 
teaching,  4  orders,  140  each,  $160;  cash  on  hand,  $35;  John  Doe  owes  you,  on  account,  $20.  You  owe  W.  C. 
Stevenson,  on  account,  $500. 

July  2.  Receive  from  E.  R.  Sheperd,  $1,000  in  cash,  as  a  margin  to  cover  purchase  of  stocks  which  he  has  asked 
you  to  buy  for  him. 

July  3.  Bought  for  E.  R.  Sheperd  100  shares  of  A.  T.  &  S.  F.  R.  R.  stock  of  P.  Cooper,  at  52}^,  payment  to  be 
made  on  the  10th.     Your  commission,  %%. 

July  10.  Sold  for  cash  R.  R.  shares  bought  for  E.  R.  Sheperd,  at  75.  Your  commission,  %%.  Paid  cash  to 
Cooper  for  shares  bought  on  the  3d.    Remitted  to  Sheperd  bank  draft  for  amount  due  him. 

July  11.   Discounted  school  orders,  receiving  $120  cash  for  the  four. 

July  12.  Drew  a  draft  on  John  Doe  at  90  days'  sight  for  $20,  and  sent  same  to  W.  C.  Stevenson  to  apply  on  ac- 
count, less  93  days'  discount. 

T). 

1.  DejSne  the  following  terms:   (a)  Debtor;  (6)  Debit;   (c)  Creditor;  (d)  Credit;  (e)  Posting;  (/)  Exchange;  (g) 

Storage. 

2.  Give  the  eight  principles  which  enable  the  bookkeeper  to  determine  the  debits  and  credits  in  any  transaction, 

and  show  why  they  are  true. 

3.  Which  side  of  Bills  Receivable  account  must  be  the  greater,  if  there  is  any  difference?    Explain  why. 

4.  Explain  the  use  of  Sales  Book,  Invoice  Book,  Cash-Journal,  and  Ledger. 

5.  Enter  in  Cash-Journal:  Jan.  1,  1897,  A.  and  B.  began  business  as  partners,  agreeing  that  the  interest  of  each 

shall  be  in  proportion  to  the  investment.    A.  had  $500  in  cash  and  owed  B.  $100  on  acct.    B.  had  $600  in 
cash,  an  account  against  A.,  $100,  and  a  Bills  Payable  outstanding  of  $500. 
Jan.  2.   Bought  mdse.  of  A.  Mann  invoiced  at  $200.     Terms,  10/10,  5/20,  n/30. 

Jan.  3.   Sold  mdse.  invoiced  at  $150  to  N.  O.  Good,  for  one-half  cash  and  balance  on  account,  subject  to  draft  at 

10  days'  sight. 
Jan.  4.   Sold  mdse.  for  $400  cash. 
Jan.  5.   Paid  bill  of  the  2d. 

Jan.  6.   Drew  draft  on  Good  for  $75  and  cashed  same  at  bank,  less  13  days'  discount. 
Jan.  8.  Paid  note  of  B.,  by  giving  $200  in  mdse.  and  $300  in  cash. 
Jan.  9.  Mdse.  inventory,  $40. 

(Post  items  necessary  to  find  worths  of  proprietors.) 

a. 

1  (a)  What  four  results  are  shown  by  accounts  ?  (b)  Which  of  these  results  are  shown  by  a  Property  account  ? 
(c)  Which  are  usually  shown  by  a  Personal  account  ?  (d)  Under  what  circumstances  may  a  Personal  account 
show  a  loss  or  gain  ?    (e)  What  results  are  shown  by  Interest  account  ? 

2.  Which  side  of  Cash  account  must  be  the  greater,  if  there  is  any  difference  ?    Explain  why. 

3.  Write  the  following  business  papers :   (a)  Receipt  on  account.     (6)  Bank  draft,     (e)  Bank  check,     (d)  Draft  at 

60  days'  sight,  showing  acceptance  and  two  indorsements. 

4.  Enter  in  Cash- Journal  the  following,  and  post  only  those  accounts  necessary  to  find  the  proprietor's  worth: 
June  1,  1897.   You  began  business  with  unnumbered  friends,  good  health,  and  plenty  of  energy.     Borrowed  on  your 

note,  secured  by  indorsement  of  W.  J.  Amis,  $100. 

June    2.  Bought  ticket  to  county-seat,  $1.12.    Paid  county  superintendent  institute  fee,  $1.    Paid  for  board  and 

room,  four  weeks,  $25.     Paid  for  books,  $5. 

June   8.  Received  for  six  days'  writing  for  county  superintendent,  $6. 

June   9.  Bought  a  horse  at  a  street  sale  for  $50. 

June  10.  Sold  horse  for  $65  cash. 

June  20.  Received  $150  from  teachers  for  subscriptions  to  Western  School  Journal. 

June  22.  Remitted  John  MacDonald,  editor,  as  per  agreement,  $125. 

June  24.  Received  for  singing  in  church  choir,  $8. 

June  25.  Loaned  Mr.  Short  Pence  $20,  on  his  note  at  10  days,  with  interest  at  25%. 

June  26.  Received  for  assisting  Slow  Polk  in  arithmetic,  $10  in  cash. 

June  27.  Paid  $1  for  examination. 

June  29.  Discounted  at  bank  the  note  received  of  Short  Pence  at  6  % . 

(No  inventory.) 


ABBREVIATIONS. 


a.,  @,  At. 

A.,  Alls.,  Answer. 

A  1,  First-class. 

Acct.,  ^  I c   Account. 

Acct.  Cur.,  Account  current. 

Acct.  Sales,  Account  sales. 

Ad.,  Adv.,  Advertisement,  adven- 
ture. 

Agt.,  Agent. 

A.  M.,  Before  noon. 
Anit.,  Amount. 
Apr.,  April. 
Assd.,  Assorted. 
Aug.,  August. 
Av.,  Average. 

B /g^  Bill  of  sales. 
Sal.,  Balance. 

B.  B.,  Bill  Book,  blank  book. 
Bbl.,  bbl..  Barrel. 

Bgs.,  Bags. 

B /j^^  Bill  of  Lading. 

B.  Pay.,  Bills  Payable. 

B.  Rec,  Bills  Receivable, 
Bk.,  Bank,  book. 

Blk.,  Black,  blank. 
Bis.,  Bales. 
Bot.,  Bought. 
Bro't,  Brought. 
Bu.,  Bushel. 
Bx.,  Box. 
c,  ct.,  ^,  Cents. 

Cap.,  Capital. 
Cash.,  Cashier. 
Ck.,  Check. 

C.  B.,  Cash  Book. 

C  O.  D.,  Collect  on  delivery. 

Ch.,  Choice. 

Chgd.,  Charged. 

Co.,  Company,  county. 

Coll.,  Collector,  collection,  college. 

Com.,  Commission. 

Con.,  Against,  consignment. 

Cr.,  Credit,  creditor. 

Ct.,  Count,  court. 

Cwt.,  Hundred  weight. 

D.  B.,  Day  Book. 
I>ec.,  December. 


d.  d..  Days  after  date.  ' 

I>ep.,  Deposited. 

Dft.,  Draft. 

Bis.,  Disct.,  Discount. 

Div.,  Dividend. 

$,  Dollars. 

Do.,  do.,  (ditto,)  The  samo. 

Doz.,  Dozen, 

Dr.,  Debtor,  doctor. 

Dray.,  Drayage. 

Ds.,  Days. 

E.  E.,  Errors  excepted. 

E.  &  O.  E.,  Errors  and  omissions 

excepted. 

Emb'd,  Embroidered. 
Ent.,  Entered. 
Etc.,  &c..  And  so  forth. 
Et  al..  And  others. 
Ex.,  Example,  extra. 
Exch.,  Exchange. 
Exp.,  Expense,  export. 
Fav.,  Favor. 
Feb.,  February. 

F.  o.  b..  Free  on  board. 
Fol.,  Folio. 

For'd,  Forward. 

Frt.,  Freight. 

Ft.,  Feet. 

Gal.,  Gallon. 

Guar.,  Guarantee. 

Gr.,  Grain,  gross. 

Hdkf.,  Handkerchief. 

Hhd.,  Hogshead. 

Hon.,  Honorable. 

Huud.,  Hundred. 

I.  B.,  Invoice  Book. 

i.  e.,  That  is. 

In.,  Inch. 

Ins.,  Insurance. 

Inst.,  Instant,  in  the  present  mo- 
ment. 

I.  O.  U.,  I  owe  you. 

Int.,  Interest. 

Inv.,  Invoice. 

Invt.,  Inventory. 

«J.,  Journal. 

jr..  Junior. 

Ij.,  Ledger. 

(Ul) 


lib..  Pound. 

Li.  F.,  Ledger  folio. 

li.  &  G.,  Loss  and  gain. 

Mar.,  March. 

MS.,  Manuscript. 

Mdse.,  Merchandise. 

Mem.,  Memorandum. 

Mfg.,  Manufacturing  or  manu- 
facture. 

Mo.,  mo..  Month, 

N.  B.,  Take  notice. 

No.,  Number. 

Nov.,  November. 

N.  G.,  Net  gain,  (also,  "  No  good. " ) 

Oct.,  October. 

O.  K.,  All  correct. 

Oz.,  Ounce. 

p..  Page. 

Payt.,  Payment. 

Pes.,  Pieces. 

Pd.,  Paid. 

Per,  By. 

Per  cent.,  % ,  By  the  hundred. 

Pk.,  Peck. 

Pkg.,  Package. 

Pr.,  Pair. 

Prem.,  Premium. 

Prox.,  Proximo,  next  month. 

Qt.,  Quart,  quarterly. 

Reed.,  Received. 

R.  R.,  Railroad. 

S.  B.,  Sales  Book. 

Sep.,  September. 

Shipt.,  Shipment. 

St.,  Street. 

St.  Dft.,  Sight  Draft. 

sr..  Senior. 

Sunds.,  Sundries. 

Trans.,  Transaction. 

Ult.,  ult.,  ulto..  Last  month. 

Via,  By  way  of. 

Vs.,  Versus. 

Viz.,  Namely. 

Vol.,  Volume. 

Vi^t.,  Weight. 

Yds.,  Yards. 

Yr.,  Year. 


BUSINESS  TERMS  DEFINED. 


A. 

Abatement.    A  discount  allowed  for  the  payment  of  a 

bill  before  due,  for  damage,  for  overcharge,  or  for 

any  similar  reason. 
Accept.     To  acknowledge  by  signature;   to  accept  a 

draft  is  to  acknowledge  the  obligation  to  pay  it  when 

due. 

Acceptance.  Agreeing  to  terms  proposed  ;  the  accept- 
or's name  written  on  the  face  of  a  bill  of  exchange 
or  draft,  usually  with  the  word  "Accepted";  bill  of 
exchange  or  draft  when  accepted. 

Accommodation  Paper.  Notes  or  acceptances  drawn 
for  the  purpose  of  being  discounted,  atid  not  founded 
on  an  actual  sale  of  goods ;  notes  or  bills  signed  and 
accepted  without  consideration;  notes  drawn  by 
merchants  for  like  amounts  and  exchanged  for  their 
mutual  accommodation. 

Account.  A  statement  of  business  transactions ;  a 
collection  of  debits  and  credits  of  the  same  kind  under 
their  common  head. 

Accountant.  One  who  is  skilled  in,  or  who  keeps  ac- 
counts. 

A  ccount  Current.  A  running  account ;  a  detailed  state- 
ment of  the  transactions  between  two  persons  or 
firms,  usually  expressed  in  the  form  of  debtor  and 
creditor. 

Account  Sales.  An  itemized  statement  of  sales  and 
expenses,  sent  by  a  commission  merchant  to  his  prin- 
cipal. It  exhibits  the  quantities  and  prices  of  the 
goods  sold  and  the  commission  and  other  charges,  and 
the  net  proceeds. 

Accrued.     Interest  accumulated  and  unpaid. 

Acknowledge.  In  commercial  correspondence,  the 
term  by  which  the  receipt  of  a  letter,  remittance 
or  order  is  admitted. 

Acknowledgment.  A  formal  admission  made  before 
an  officer  that  the  act  described  was  voluntarily 
done.  The  officer's  certificate  of  the  admission  is 
also  called  an  acknowledgment. 

Adjust.  To  put  in  order;  to  bring  to  a  satisfactory 
stage,  so  that  parties  can  agree  in  the  result. 

Administrator.  One  who  is  appointed  by  the  court  to 
settle  an  estate. 

Ad  Valorem.  According  to  value ;  a  custom-house 
term,  relating  to  the  estimating  of  duties  upon  the 
value  of  imported  goods. 

Advance.  Addition  to  price ;  rise  in  price;  money  paid 
before  goods  are  delivered;  a  payment  made  by  a 
consignee  to  his  consignor  before  his  assignment  has 
been  sold. 

Adventure.  A  speculation  of  any  kind,  commercial, 
financial,  or  mining  ;  a  venture  ;  specifically,  a  ven- 
ture or  speculation  in  goods  sent  abroad  or  sent  to 
be  sold  on  commission. 

Advice.  Notice  of  a  bill  drawn ;  mercantile  informa- 
tion. 

Affidavit.    A  written  declaration  under  oath. 

Agent.    One  who  is  acting  in  behalf  of  another. 

Allow.  To  concede;  to  rebate  or  deduct;  to  make 
abatement. 

Allowance.    A  deduction. 

Am,ount.  The  sum  total ;  aggregate  ;  gross  amount ; 
total  without  reduction.  Net  amount  is  the  total  less 
deduction. 


Annuity.  A  periodical  payment  of  money,  amounting 
to  a  fixed  sum  in  each  year,  the  money  so  paid  being 
either  a  gift  or  a  consideration  of  a  gross  sum  re- 
ceived. 

Annul.     To  make  void. 

Antedate.    To  date  earlier  than  the  real  time. 

Anticipate.     To  pay  before  due. 

Appraise.  To  value  in  current  money ;  officially  set  a 
price  upon. 

Appraisement.    The  act  of  setting  a  value  upon  goods 

or  other  property. 
Arbitration.     The  adjustment  of  a  disputed  point  by  a 

person  or  persons  chosen  by  the  parties  in  dispute. 

Assessment.    The  sum  appropriated  to  be  paid. 

Assets.  The  term  commonly  used  in  trade  to  designate 
the  funds,  property  or  effects;  that  is,  the  stock  in 
trade,  cash  and  all  available  property  of  a  merchant, 
in  contradistinction  to  his  liabilities  or  obligations. 

Assign.  To  transfer  or  make  over  to  another  all  right 
one  has  in  any  object ;  as,  in  an  estate,  especially  in 
trust  for  the  security  of  creditors. 

Assignee.  A  person  to  whom  a  transfer  of  some  right 
or  interest  is  made. 

Assignor.     One  who  makes  an  assignment. 

Association.  An  organized  union  of  persons  for  a  com- 
mon purpose ;  a  partnership. 

Assume.  To  take  upon  one's  self ;  to  promise  to  pay 
money  or  perform  other  specified  service. 

Attach.    To  take  by  legal  process. 

Attachm,ent.  A  warrant  for  the  purpose  of  seizing  a 
man's  property. 

Audit.     To  examine  and  verify  by  reference  to  vouchers. 

Auditor.  An  officer  appointed  by  the  government,  state, 
or  any  corporation,  to  examine  claims  upon  the  treas- 
ury, and  to  investigate  the  treasurer's  account. 

A  uxiliary.  Applied  to  various  account  books  that  are 
kept  as  aids  to  the  principal  books. 

Average.  An  assessment  on  a  vessel  or  cargo  to  meet 
losses  at  sea. 

B. 

Balance.    The  amount  necessary  to  close  an  account ; 

an  equilibrium  of  debits  and  credits. 
Balance  of  Trade.     The  difference  between  the  value 

of  the  commercial  imports  and  exports  of  any  country. 
Bank.     An  incorporated    institution    which   deals  in 

money. 

Bankable.  Receivable  as  cash  by  a  bank ;  as,  bank- 
notes, checks,  or  other  security  for  money. 

Bank  Account.  The  amount  a  concern  has  on  deposit 
in  a  bank. 

Bank  Book.  A  pass-book  carried  by  a  depositor,  in 
which  the  teller  of  a  bank  records  deposits,  and  in 
which  the  bookkeeper  enters  the  paid  checks  at 
stated  intervals. 

Bank  Bill  or  Note.  Promissory  notes  printed  by  the 
government  and  issued  by  a  national  bank,  payable 
on  demand,  and  used  as  money. 

Bankrupt.  One  who  is  unable  to  pay  his  debts,  and 
who  fails  in  business. 

Bankruptcy.    The  state  of  being  bankrupt  or  insolvent. 


(142) 


STEVENSON  S  INTRODUCTORY  BOOKKEEPING. 


143 


Bill.  A  statement  in  writing,  as  a  list  of  items  bought 
or  sold,  or  of  service  rendered.  The  common  term 
applied  to  a  note  or  draft. 

Bill-head.  A  printed  form  used  by  a  concern  for  its 
bills  of  goods  sold. 

Bill  of  Entry.  A  written  statement  of  goods  entered 
at  the  custom-house,  whether  imported  or  intended 
for  export. 

Bill  of  Exchange.  An  order  for  the  payment  of  money, 
usually  drawn  on  a  person  living  in  a  foreign  country, 
the  term  draft  being  used  to  designate  bills  that  are 
payable  in  the  same  country  in  which  they  are  drawn. 

Bill  of  Lading.  A  written  account  of  goods  shipped 
and  the  conditions  of  shipment,  having  the  signature 
of  the  carrier's  agent,  and  given  to  the  shipper  as  a 
receipt. 

Bill  of  Sale.  A  paper  given  by  the  seller  to  the  buyer, 
transferring  the  ownership  of  personal  property. 

Board  of  Trade.  An  association  of  business  men  for 
the  regulation  and  advancement  of  commercial  inter- 
ests. 

Bond.  A  writing,  under  seal,  binding  a  person  to  fill 
certain  obligations. 

Bonded  Ooods.  Goods  that  are  stored  in  a  warehouse 
or  a  bonded  car,  the  owner  having  given  bond  secur- 
ing the  payment  of  import  duties  or  of  internal  rev- 
enue upon  their  removal,  or  their  arrival  at  some 
inland  city  or  country,  and  before  a  specified  time. 

Bonded  Warehouse.  A  government  warehouse  in 
which  bonded  goods  are  stored  until  the  duties  are 
paid. 

Bonus.  Premium  given  on  a  loan  or  money  favor 
granted. 

Brand.    A  trade-mark  ;  a  particular  kind  of  goods. 

Broker.  An  agent  who  effects  sales  or  purchases,  or 
who  makes  loans  and  contracts  for  another ;  also  a 
term  applied  to  one  who  deals  in  stocks.  A  broker 
does  not  generally  have  possession  of  the  property 
which  he  sells  or  buys  as  agent. 

Brokerage.  The  percentage  paid  to  a  broker  for  ne- 
gotiating any  business. 

Bullion.     Uncoined  gold  or  silver. 

Business.  Exchange  of  commodities  and  of  commer- 
cial values ;  also  a  term  representing  one's  occupa- 
tion. 

0. 

Capital.    The  investment  in  business  ;  the  net  assets. 

Cargo.    The  freight  of  a  vessel. 

Cash.    Money  on  hand  or  at  command. 

Cash  Book.  A  book  in  which  is  kept  a  register  of 
money  received  and  paid. 

Cash  Sales.  Sales  made  for  ready  money,  in  distinc- 
tion from  sales  made  on  credit. 

Cashier.    One  who  has  charge  of  the  cash. 

Certificate.     A  written  voucher  attesting  to  some  fact. 

Certified  Check.  A  check  which  has  been  certified  or 
accepted  by  the  bank  on  which  it  is  drawn,  making 
the  bank  responsible  for  its  payment. 

Charge.  To  place  upon  the  debtor  side  of  an  account ; 
to  register  a  debt. 

Charter.  A  paper  from  government  defining  the  rights 
and  privileges  of  a  corporation  ;  to  hire  or  let  an  in- 
strument of  transportation. 

Chattel.     Any  kind  of  property  except  real  estate. 

Chattel  Mortgage.     A  mortgage  of  personal  property. 

Check.     An  order  on  a  bank  drawn  by  a  depositor. 

Clearance.  A  certificate  coming  from  a  custom-house, 
granting  a  vessel  permission  to  sail. 

Clearing-h'iuse.  The  place  where  banks  make  ex- 
change of  drafts  and  checks,  and  settle  balances. 

Codicil.     A  supplement  to  a  will. 


Coin.  A  piece  of  metal  impressed  with  the  government 
stamp,  and  used  as  a  medium  of  exchange. 

Collaterals.  Stocks,  bonds,  notes,  or  other  value ; 
pledges  of  security  when  money  is  borrowed. 

Commerce.  A  general  term  for  the  business  of  ex- 
changing commodities. 

Commercial  Paper.  Bills  of  exchange,  drafts  and 
notes  given  in  the  course  of  trade. 

Comm,ission.  A  percentage  given  for  the  sale  or  pur- 
chase of  goods,  or  the  transaction  of  other  business. 

Commodity.  A  term  relating  to  everything  movable 
that  is  bought  and  sold. 

Common  Carrier.  Railroads  and  other  means  of  trans- 
portation carrying  on  a  regular  business,  and  in  the 
equitable  and  judicious  management  of  which  the 
public  has  a  common  interest. 

Common  Law.  Law  based  upon  the  precedent  of 
usage ;  not  contained  in  the  statutes  enacted  by  leg- 
lative  bodies. 

Compact.     An  agreement  or  contract  between  parties. 

Company.  An  association  of  persons  for  business  pur- 
poses ;  a  term  used  in  a  firm  name  to  denote  partners 
whose  names  are  not  given, 

Com,pound  or  Compromise.  To  settle  a  claim  by  pay- 
ing or  receiving  only  a  part  of  the  amount ;  a  settle- 
ment based  upon  mutual  concessions. 

Consideration.     The  material  cause  of  a  contract. 

Consign.  To  send  goods  to  another  to  be  sold  for  the 
shipper. 

Consignee.     One  to  whom  goods  are  sent. 

Consignment.     Goods  consigned. 

Consignor.     One  who  sends  or  consigns  goods. 

Consul.  An  agent  for  a  government,  residing  in  a  for- 
eign country,  and  guarding  the  interests  of  hie  own 
country. 

Contra.     On  the  opposite  side. 

Contract.     An  agreement  based  on  a  consideration. 

Copartnership.      The  union  of  two  or  more  persons 

for  the  transaction  of  business. 
Copyright.     The  right  granted  by  a  government  to  an 

author  to  control  the  publication  of  any  of  his  works. 
Corporation.     A  body  authorized  by  law  to  act  as  an 

individual. 
Counter-entry.     An  entry  made  to  balance  one  on  the 

other  side. 
Counterfeit.     Spurious  money ;  a  forgery. 
Countermand.     To  revoke  a  former  order. 
Counting-room,.     A  room  in  which  merchants  keep 

their  accounts  and  transact  business. 
Coupon.    An  interest  note  or  a  certificate  attached  to 

a  bond,  which  is  cut  off  from  the  bond  and  collected 

when  due. 

Credit.  Trust  given  to  a  debtor;  mercantile  reputa- 
tion entitling  one  to  be  trusted ;  the  side  of  an  ac- 
count on  which  we  enter  all  values  received  from  the 
party  represented  by  the  title. 

Creditor.     One  giving  credit ;  one  whom  we  owe. 

Currency.  Paper  money  as  distinguished  from  coin ; 
in  a  broader  sense,  the  entire  volume  of  money  in 
circulation. 

Custom-house.     A  government   place  where  imported 

goods  are  entered  and  duties  collected. 
Customs.    Taxes  or  duties  levied  by  government  upon 

goods  imported  or  exported. 

D, 

Day  Book.  The  book  which  contains  the  daily  record 
of  a  concern's  business  transactions,  recorded  in  the 
order  of  their  occurrence. 

Days  of  Orace.  An  extension  of  time,  usually  three 
days,  after  an  obligation  becomes  due.  The  maker 
of  a  note,  or  the  acceptor  of  a  draft,  has  until  the 
third  day,  after  and  exclusive  of  the  day  expressed, 


144 


STEVENSON  g  INTRODUCTORY  BOOKKEEPING. 


in  which  to  make  payment,  except  when  the  third 
day  of  grace  falls  upon  Sunday  or  a  legal  holiday,  in 
which  case  the  note  must  be  paid  on  the  second  day 
of  grace.  If  a  Sunday  and  a  legal  holiday  follow  one 
immediately  after  the  other,  the  note  must  be  paid 
on  the  first  day  of  grace.  If  the  words,  "no  grace," 
or  "  without  grace,"  are  inserted  in  a  draft,  it  is  due 
at  the  end  of  the  specified  time.  "Demand"  notes 
are  not  entitled  to  days  of  grace. 
Debit.  An  entry  on  the  debtor  side  of  an  account,  or 
the  expression  of  the  condition  of  being  debtor. 

Debt.    An  amount  due  from  one  to  another. 

Debtor.    One  who  owes  a  debt. 

Deed.  A  written  contract  under  seal,  usually  transfer- 
ring the  ownership  of  real  estate. 

Defalcation.  Deduction  or  discount ;  embezzlement  of 
money  by  an  officer  having  it  in  charge. 

Defaulter.  One  who  fails  to  account  for  money  and 
property  intrusted  to  him. 

Delivery.    The  passing  of  money  or  goods  to  another. 

Deposit.  To  commit  to  the  care  of  ;  especially,  to  place 
money  in  bank  subject  to  order. 

Depository.    Place  of  deposit. 

Deputy.    A  person  appointed  to  act  for  another. 

Diplomacy.  The  art  of  conducting  negotiations  with 
foreign  governments. 

Discount.  An  allowance  for  a  payment  of  a  debt  be- 
fore it  is  due ;  a  sum  prepaid  as  interest  for  the  ad- 
vance of  money;  to  buy  a  note  or  account  for  less  than 
its  full  amount. 

Dishonor.  A  failure  to  pay  an  obligation  when  due ; 
a  failure  to  accept  a  draft  when  presented  for  accept- 
ance. 

Dividend.  The  portion  allotted  to  each  stockholder  in 
the  division  of  profits. 

Donor.    One  who  bestows  a  gift. 

Dormant.  Referring  to  a  partner  who  takes  no  share 
in  the  public  management  of  a  business,  hence,  not 
named  in  the  firm,  but  who  shares  in  the  losses  and 
gains. 

Dower.  The  right  of  a  widow  to  a  life  interest  in  one- 
third  of  all  the  real  estate  owned  by  her  husband  at 
any  time  after  their  marriage. 

Draft.  An  order  on  an  individual  or  a  firm  for  the  pay- 
ment of  money. 

Drawee.    One  to  whom  the  draft  is  directed. 

Drawer.  The  party  drawing  the  draft  and  ordering 
payment. 

Due-bill.  A  brief,  written  acknowledgment  of  a  debt, 
having  the  ( ff  )ct  of  a  promissory  note. 

Dunning.  Soliciting  payment  for  a  debt,  or  the  urgent 
pressing  of  the  payment  of  a  debt. 

Duplicate.     An  exact  copy  of  anything. 

Duress.     Personal  restraint,  or  fear  of  personal  injury. 

Duties.  Taxes  levied  by  the  government  on  imports, 
and  sometimes  on  exports. 

E. 

Earnest.     Part  of   purchase-money  paid,  or  part  of 

goods  delivered  to  bind  a  verbal  contract. 
Effects.     All  values  belonging  to  the  concern. 
Embargo.     A  government  order  prohibiting  ships  from 

sailing  from  any  port. 
Embarrassment.    Perplexity  arising  from  inability  to 

pay  a  debt. 
Embezzlement.    A  fraudulent  appropriation  of  money 

intrusted  to  one's  care. 
Emporium,.     A  commercial  center. 
Endorse  or  Indorse.    To  write  one's  name  on  the  back 

of  a  commercial  paper  ;  to  receipt  a  partial  payment 

on  the  back  of  a  note  or  bill. 
Engross.    To  copy  in  manuscript. 


Entry.  The  record  of  a  business  transaction  in  an  ac- 
count book. 

Entry  Clerk.    A  clerk  who  records  sales. 

Equation.     The  process  of  equalizing  or  averaging. 

Equity.  The  science  of  right  and  justice,  which  often 
corrects  the  application  of  law  in  a  particular  case. 

Equity  of  Redemption.  A  privilege  allowed  to  a  mort- 
gagor of  a  reasonable  time  to  redeem  mortgaged 
property. 

Errors  Excepted.  A  phrase  inserted  as  a  proviso  that 
the  person  who  renders  a  statement  may  have  the 
power  of  correcting  any  mistake  that  he  may  have 
committed. 

Exchange.  The  giving  of  one  value  for  another ;  the 
process  of  remitting  money  values  by  means  of  bills 
and  drafts ;  the  discount  or  premium  arising  from 
the  purchase  or  sale  of  different  classes  of  paper. 

Excise.  A  tax  levied  on  commodities  produced  within 
a  country. 

Execution.  A  written  direction  given  to  an  officer  au- 
thorizing him  to  enforce  a  judgment;  the  act  of 
signing  and  sealing  a  legal  instrument. 

Executor.  One  appointed  by  will  to  settle  the  estate 
of  a  person  deceased. 

Exports.    Goods  sent  out  of  a  country. 

Extend.  As  applied  to  accounts,  to  extend  is  to  write 
the  figures  in  the  money  columns.  An  amount  is 
entered  "short"  when  it  is  placed  at  the  left  of  the 
money  columns. 

Extension.  An  allowance  of  further  time  for  the  pay- 
ment of  a  debt. 

F. 

Face.  The  amount  for  which  a  note,  draft  or  other 
commercial  paper  is  written. 

Factor.  An  agent  to  whom  goods  are  consigned  for 
sale. 

Facsimile.    An  exact  copy. 

Failure.    The  act  of  becoming  insolvent. 

False  Pretenses.  Statements  made  with  a  fraudulent 
design  to  obtain  goods  on  credit,  or  money. 

Favor.  A  note,  draft,  or  check  is  drawn  in  favor  of 
the  party  to  whom  it  is  made  payable. 

Finance.     The  revenue  of  a  state ;  public  money. 

Financier.  One  who  collects  or  manages  the  finances ; 
one  who  has  skill  in  money  matters ;  pecuniary  man- 
agement. 

Firm.    The  designated  title  of  a  copartnership. 

First-class.     Best  quality. 

First-hand.     Obtained  directly  from  the  manufacturer. 

Fiscal.  Pertaining  to  the  public  treasury  or  revenue ; 
as,  the  fiscal  year,  meaning  a  financial  year  as  reck- 
oned by  the  department  of  finance. 

Fixtures.  The  furniture  of  a  store  or  office  which  is 
not  movable. 

Flat.  A  term  signifying  that  stock  is  sold  without 
reference  to  accumulated  interest ;  low  in  price  ;  dull 
as  to  sales. 

Folio.    A  page  in  an  account  book  ;  a  book  composed 

of  sheets  folded  once. 
Footing.     The  amount  of  a  column  of  figures. 
Forced  Sale.     A  sale  under  compulsion,  usually  by 

auction. 

Foreclose.  Applied  to  a  mortgage,  and  means  to  de- 
prive a  mortgagor  of  the  equity  of  redemption. 

Foreclosure.  A  process  by  which  the  mortgaged  prop- 
erty is  sold  by  the  mortgagee  in  order  to  pay  the  debt 
secured. 

Forgery.  Altering  commercial  paper  with  fraudulent 
intent ;  making  or  passing  a  false  note,  draft  or 
check. 

Fraud.  Deception  practiced  for  the  purpose  of  gain- 
ing an  unfair  advantage. 


STEVENSON  S   INTRODUCTORY   BOOKKEEPING. 


145 


Free  on  Board.     The  price  at  which  goods  are  sold 
free  of  all  shipping  expenses. 

Free   Trade.      A  free  interchange  of  commodities  be- 
tween two  countries ;  trade  not  regulated  by  duties. 

Freight.     Sum  paid  for  transportation  of  goods ;  goods 
carried  by  water  or  by  land. 

Full  Extend.    To  extend  figures  into  the  money  col- 
umns. 

Fund.    A  sum  of  money  set  aside  for  a  special  purpose. 

Funded.  A  permanent  loan  on  which  an  annual  in- 
terest is  paid. 

Funds.    Money ;  wealth  ;  capital. 

G. 

Gain.    Profit ;  increase  in  wealth. 

Oauglng.  The  process  of  measuring  the  contents,  as, 
of  a  cask  or  other  vessel,  to  ascertain  its  capacity. 

Gold  and  Silver  Certifioates.  Certificates  issued  by 
the  U.  S.  government,  circulating  as  money,  on  the 
security  of  gold  belonging  to  or  deposited  with  the 
government,  or  of  silver  belonging  to  itself. 

Goods.    All  kinds  of  merchandise. 

Good  Will.  The  reputation  and  influence  of  a  person 
or  firm  doing  business. 

Grace.    See  "Days  of  Grace." 

Greenbacks.  U.  S.  notes  as  distinguished  from  na- 
tional bank  notes. 

Gross  Weight.  Weight  of  merchandise,  including  the 
case  or  wrapping. 

Guarantee.  A  promise  to  answer  for  the  payment  of 
debt. 

Guaranty.  A  security  for  the  performance  of  a  con- 
tract, in  case  the  party  making  the  contract  fails  to 
make  it  good.     A  security  against  loss. 


H. 

Honor.    To  accept  a  draft,  and  to  pay  it  when  due. 
House.    Another  term  for  firm. 

Hypothecate.  To  pledge  as  security  in  order  to  raise 
money. 

I. 

Import.     To  bring  from  a  foreign  country. 

Impost.    A  tax  levied  upon  imported  goods. 

Indemnify.     To  make  good  for  injury  or  loss. 

Indem,nity.  Insurance ;  a  guaranty  against  loss  or 
damage. 

Indenture .  A  mutual  agreement  in  writing  between 
two  parties. 

Index.    An  alphabetic  list  of  accounts. 

Indorse.    See  "Endorse." 

Indulgence.    Extension  ofTime  of  payment. 

Infringement.  To  trespass  upon  the  rights  of  another, 
especially  when  granted  some  special  right  by  law, 
such  as  a  copyright,  a  patent,  or  a  trade-mark. 

Injunction.  A  judicial  process  by  which  a  party  is  re- 
quired to  do  or  to  refrain  from  doing  a  certain  act. 

I.  O.  U.    I  owe  you. 

Insolvent.  Unable  to  pay  one's  debts;  one  who  is  in- 
solvent. 

Installment.    Part  of  a  sum  paid  or  to  be  paid. 

Instant.     Referring  to  the  present  month. 

Insurance.  A  contract  by  which  one  engages  for  a 
stipulated  consideration  or  premium  per  cent,  to 
make  up  a  loss  which  another  may  sustain. 

Internal  Revenue.  That  part  of  our  government 
revenue  which  is  collected  as  internal  duties  and 
taxes. 

—10 


Interest.  A  share  in  business  or  in  its  profits ;  a  cause 
for  the  payment  or  receipt  of  money;  literally,  the  use 
of  money. 

Intestate.     Dying  without  leaving  a  will. 

Inventory.     A   list    of   unsold   property,   showing    its 

quantity  and  value,  or  of  goods  in  a  store. 
Investment.    The  laying  out  of  money  in  the  purchase. 

of  property. 

Invoice.    A  detailed  list  of  goods  bought,  which  is  sent, 

by  the  seller  to  the  buyer. 
Involved.    Embarrassed  by  debts. 

J. 

Jetsam  or  Jettison.  Allowance  for  goods  thrown  over- 
board in  a  storm  to  lighten  a  ship ;  also  the  goods 
thrown  overboard. 

Jqbber.  One  who  buys  goods  from  the  importers  and 
manufacturers  and  sells  to  country  and  other  mer- 
chants and  to  retailers. 

Job  Lot.  A  miscellaneous  assortment  of  goods,  to  be 
sold  for  a  lump  sum  and  at  a  low  price. 

Joint  Stock.  Property  held  in  common  by  a  company 
of  men,  each  of  whom  is  called  a  stockholder. 

Journal.    A  book  used  to  prepare  entries  for  the  Ledger. 

Journalizing.    Entering  records  in  the  Journal. 

Judgment.  The  decree  of  a  court  enforcing  a  c-ontract 
or  redressing  a  wrong. 

K. 

Kiting.  The  exchange  of  checks  on  different  banks, 
that  time  may  be  gained,  and  the  use  of  money  with- 
out paying  interest.     It  is  a  dishonest  practice. 


L. 

Larceny.    The  taking  of  personal  property  unlawfully. 

Lease.  An  instrument  of  conveyance  of  property  for  a 
limited  time,  upon  rental. 

Ledger.  The  book  of  accounts  to  which  all  of  the  rec- 
ords are  finally  carried. 

Legacy.     A  gift  of  property  by  will. 

Legal  Tender.  That  which  the  government  has  de- 
clared shall  be  received  in  payment  of  ordinary  debts. 
Any  form  of  money. 

Letter  of  Advice.  A  letter  of  information  concerning 
a  shipment  of  goods  or  the  drawing  of  a  draft. 

Letter  of  Credit.  A  letter,  usually  addressed  to  bank- 
ing houses  in  foreign  cities,  authorizing  the  holder  to 
receive  credit  for  a  stated  amount. 

Liability.  The  pecuniary  obligations  of  a  merchant, 
which  includes  his  bills  payable  and  all  his  other 
debts. 

License.    A  legal  permit  to  do  a  certain  thing. 

Lien.  The  right  of  holding  or  detaining  the  property  of 
another  until  some  legal  claim  can  be  satisfied. 

Limited.  A  part  of  a  title,  that  signifies  that  each 
partner  is  only  liable  for  the  amount  of  his  invest- 
ment. 

Liquidate.    To  pay  or  settle  a  claim. 

Loan.     To  lend  to  another  for  temporary  use. 

Loss.    A  decrease  in  wealth. 

Lucre.     A  profit  in  money  or  goods;  profit;  richer. 

M. 

Maker.    The  signer  of  a  note. 
Manifest.    A  list  of  articles  in  a  vessel's  cargo. 
Maturity.    The  date  when  a  commercial  paper  expires, 
or  becomes  due. 

Merchandise.  That  which  is  bought  and  sold  in  the 
course  of  trade. 


146 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


Mercantile  Agency.  A  concern  which  procures  in- 
formation relating  to  the  financial  standing  and  credit 

'  of  merchants  for  the  use  of  others,  to  whom  said 
merchants  may  apply  for  credit. 

Mercantile  Paper.    Notes  and  drafts. 

Merchandise  Broker.  One  who  buys  or  sells  merchan- 
dise on  a  commission  but  does  not  keep  a  store  or 
goods ;  a  middleman  between  buyer  and  seller. 

Mint.  The  place  established  by  the  government  where 
money  is  coined. 

Monetary.    Pertaining  to  money. 

Money.  Any  coin  or  currency  lawfully  employed  as  a 
representative  of  value  in  buying  or  selling. 

Monopoly.  The  sole  right  to  make  or  sell  a  certain  ar- 
ticle.    The  exclusive  control  of  anything. 

Mortgage.  The  written  pledge  of  real  estate  or  chattels 
to  secure  the  payment  of  a  debt. 

Mortgagee.    The  one  to  whom  the  mortgage  is  payaWe. 

Mortgagor.    The  one  who  gives  a  payment. 

N. 

National  Bank.  Established  in  the  United  States  by 
an  act  of  Congress,  for  the  purpose  of  unifying  the 
currency. 

Negotiable.  A  term  applied  to  commercial  paper  that 
may  be  transferred  by  indorsement  or  simply  by  de- 
livery. 

Negotiate.  To  transact  business,  or  treat  with  an- 
other. 

Net.  Clear  of  all  deduction;  the  exact  weight  or 
amount  after  all  deductions  are  counted  out. 

Net  Proceeds.  The  proceeds  of  a  sale  after  all  ex- 
penses are  deducted. 

Nominal.    Existing  in  name  only. 

Notary  a,nd  Notary  Public.  An  officer  who  acknowl- 
edges deeds  and  other  commercial  papers,  and  pro- 
tests paper  for  non-acceptance  and  non-payment. 

Note.    A  written  or  printed  promise  to  pay,  without  seal. 

o. 

Obligation.  That  which  legally  binds  a  party  to  per- 
form a  duty. 

On  Account  or  On  Credit.  Buying  or  selling  goods  to 
be  paid  for  at  a  future  day. 

Open  Account.  A  running  account  on  a  merchant's 
book,  of  debits  or  credits,  with  an  individual  or  firm. 

Open  Policy.  One  intended  to  cover  all  goods  shipped 
by  a  certain  person  within  a  specified  time ;  each 
special  shipment  and  the  amounts  of  insurance  to  be 
indorsed  upon  the  policy,  as  the  shipments  are  made. 

Outlaived.  A  term  applied  to  a  debt  which  has  run  be- 
yond the  time  when  the  law  will  enforce  its  payment. 

Outstanding.    Eeferring  to  debts  or  liabilities  unpaid. 

Overcharge.  A  charge  at  a  higher  rate  than  that 
agreed  upon  or  than  usual  rates. 

Overdraw.  To  draw  a  greater  sum  than  one  has  to  his 
credit. 

Overdue.    Remaining  unpaid  after  maturity. 

Owe.    To  be  indebted. 

P. 

Par.  Equal  in  value.  Any  paper  or  money  is  at  par 
when  it  is  worth  face  value,  without  premium  or 
discount. 

Par  of  Exchange.  Equivalent  value  of  the  currency 
of  a  country  in  that  of  another. 

Parol.  Oral,  not  written.  Also  applied  to  written  con- 
tracts not  under  seal. 

Partial  Payments.    Part  payment  of  a  debt. 

Partner.    An  associate  in  any  business  or  occupation. 


Partnership.  The  association  of  two  or  more  persons 
in  any  one  occupation. 

Par  Value.  The  nominal  value;  usually  the  printed 
or  written  value  of  any  paper. 

Pass-book.  A  book  in  which  a  dealer  enters  articles 
bought  on  credit.  It  is  usually  carried  by  the  pur- 
chaser, and  is  presented  for  record  when  the  purchase 
is  made.  A  bank  book  containing  a  record  of  de- 
posits and  checks  drawn. 

Patent.  An  official  document  securing  to  a  person,  for  a 
term  of  years,  the  exclusive  right  to  an  invention. 

Pawn.  A  deposit  pledge,  given  as  security  for  a  loan. 
The  term  only  applies  to  chattels  or  money  and  not 
to  real  estate. 

Pawnbroker.  One  who  lends  money  on  pawns  or 
pledges. 

Pay.  To  discharge  a  debt  or  obligation  ;  an  equivalent 
for  goods,  salary,  or  wages. 

Payee.  The  one  to  whom  payment  is  to  be  made ; 
especially  in  whose  favor  a  paper  is  drawn. 

Payer.    The  one  who  pays  or  is  under  obligations  to  pay. 

Personal  Property.  A  term  applied  to  all  pioperty 
not  real  estate. 

Plaintiff.  One  who  brings  a  personal  action  in  law 
against  another  party,  who  is  called  the  defendant. 

Pledge.  The  delivery  of  personal  property  as  security 
for  debt. 

Policy.    A  written  contract  of  insurance. 

Postdate.    To  date  later  than  the  real  day. 

Posting.  Transferring  dates,  pages  and  amounts  from 
the  book  of  original  entry  into  the  Ledger. 

Power  of  Attorney.  A  written  instrument  giving  an 
agent  authority  to  act  for  his  principal.  An  agent 
thus  employed  is  called  an  attorney-in-fact. 

Preferred  Stock.  Stock  taking  preference  over  the 
ordinary  stock  of  a  corporation.  A  dividend  is  de- 
clared and  paid  on  preferred  stock  before  any  can  be 
declared  on  common  stock. 

Premium.  The  amount  paid  for  insurance ;  the  excess 
of  any  value  above  par. 

Price.    The  value  of  an  article ;  the  amount  paid  or 

demanded  for  any  commodity  in  trade. 
Price-current.     A  regularly  established  and  published 

list  of  the  market  prices  of  goods. 
Prima  Facie.    At  first  view.     Prima- facie  evidence 

is  that  evidence  which  is  sufficient  unless  rebutted. 
Principal.    The  one  employing  an  agent  to  act  for  him ; 

the  sum  loaned  upon  which  interest  is  computed. 
Promissory  Note.     A  written  promise  to  pay  a  certain 

sum  of  money  unconditionally,  at  a  specified  time. 
Pro  Rata.     A  proportional  distribution. 
Protecting.     Accepting  or  paying  a  draft. 
Protective  Tariff.    Rates  of  duty  fixed  higher  than  the 

uniform  rates  on  certain  imported  commodities,  for 

the  protection  of  home  manufacturers. 
Protest.     A  formal  declaration  made  by  a  notary  public 

of  the  non-payment  of  a  note,  or  non-payment  or  non- 
acceptance  of  a  draft. 

Q- 

Quarantine,  Restraint  of  intercourse  to  which  a  ship, 
dwelling  or  town  is  subjected  on  account  of  being  in- 
fected with  some  contagious  disease. 

Quotations.  The  published  prices  of  merchandise,  rates 
of  freight,  rates  of  exchange,  etc. 

R. 

Pate.     Established  portion  or  measure;  fixed  allowance. 
Ratify.    To  sanction  or  approve ;  usually  applied  to  a 

principal's  approval  of  an  agent's  transactions. 
Real  Estate.     Land,  and  everything  that  usually  passes 

with  it  in  a  conveyance  or  sale. 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


147 


Pebafe.     An  amount  deducted  from  the  regular  prico. 

Receipt.  A  writing  acknowledging  that  goods  or  money 
have  been  received. 

Receiver.  A  person  appointed  to  take  charge  of  the 
affairs  of  a  corporation  on  its  dissolution,  and  to  dis- 
tribute its  property  according  to  law. 

Reciprocity  Treaty.  A  commercial  treaty  between  two 
nations,  securing  mutual  advantages. 

Reclamation.  A  claim  made  against  the  seller  of  goods 
which  prove  deficient  or  defective ;  a  claim  for  rebate. 

Reconsign.  To  send  a  consignment  of  goods  to  another 
market,  at  request  of  its  consignor. 

Refund.    To  repay  or  pay  back. 

Registry.    The  enrollment  of  ships  at  the  custom-house. 

Remittance.  The  act  of  transmitting  money  values 
from  one  place  to  another.  The  value  sent  is  called 
a  remittance. 

Renewal.  Giving  a  new  note  in  exchange  for  a  like 
note  then  due. 

Rent.    Amount  paid  for  another's  premises. 

Re])ri8aL  The  act  of  taking  ship  or  property  from  an 
enemy  in  retaliation  for  "  prize  "  taken  by  him. 

Responsible.  Having  sufficient  property  to  meet  all 
ordinary  obligations. 

Resources.  Money,  property  or  that  which  can  be  con- 
verted into  property;  as,  claims  against  other  people, 
either  on  verbal  or  written  promise. 

Retail.    To  sell  in  small  quantities. 

Retire.  Eelinquishing  or  giving  up  business;  also,  to 
take  up  one's  notes  by  payment  or  renewal. 

Returns.     Profits  or  receipts  on  business. 

Revenue.  The  income  of  individual  or  nation;  as  ap- 
plied to  a  nation,  its  receipts  into  the  treasury  de- 
rived from  taxes,  duties,  customs,  etc. 

Revocation.  The  recall  of  authority  conferred  on  an- 
other; as,  the  revocation  of  an  agency. 

Right  of  Way.  The  right  of  an  individual  or  corpora- 
tion to  .pass  over  the  land  belonging  to  another  per- 
son. 

s. 

Sale.  The  transfer  of  property  from  one  person  to  an- 
other. 

Salvage.  An  allowance  made  by  law  to  persons  who 
voluntarily  assist  in  saving  a  ship  or  her  cargo  from 
peril. 

Sample.  A  specimen ;  small  part  of  a  whole,  show- 
ing the  quality. 

Savings  Bank.  Bank  of  deposit  where  interest  is  al- 
lowed on  amounts  deposited. 

Schedule.  A  paper  containing  a  list  or  inventory  of 
items. 

Seize.    To  take  possession  of  by  process  of  law. 

Seller'' s  Option.  A  term  mostly  confined  to  the  sales 
of  stocks,  for  a  sale  which  gives  to  the  seller  the  op- 
tion of  delivering  the  articles  sold  within  a  certain 
time,  the  buyer  paying  the  interest  up  to  delivery. 

Set-off.  A  claim  which  the  debtor  or  defendant  brings 
to  reduce  the  claim  of  a  creditor  or  plaintiff. 

Set  of  Exchange.  A  number  of  bills  (usually  three) 
drawn  of  same  tenor  and  date.  Each  bill  is  forwarded 
by  different  conveyance,  to  lessen  the  risk  of  failure  in 
delivery,  and  any  one  of  them  being  paid  leaves  the 
others  of  no  value. 

Settle.    To  adjust  or  close  up  an  account. 

Shipment.  Merchandise  shipped ;  the  act  of  transport- 
porting  merchandise ;  a  term  applied  to  goods  shipped 
to  be  sold  on  commission. 

Shipper.  One  who  leaves  merchandise  with  another 
for  transportation. 

Shipping  Clerk.  A  person  who  attends  to  the  ship- 
ping of  goods. 

Short.    Deficient;  wanting  ready  money. 


Short  Extend.  To  extend  figures  to  the  immediate 
left  of  the  money  column. 

Shrinkage.    A  decrease  in  value. 

Sight.    Time  of  presenting  a  draft  for  acceptance. 

Sight-draft.  A  draft  payable  at  sight;  that  is,  on  pres- 
entation to  the  drawee. 

Signature.  The  name  of  a  person  written  with  his 
own  hand. 

Silent  Partner.  One  who  shares  in  the  profits  of  the 
business,  but  whose  name  does  not  appear  in  the  firm 
name,  and  who  takes  no  active  part  in  the  business. 

Sinking  Fund.  A  fund  set  aside  for  the  redemption  of 
debts. 

Sine  Die.    Without  fixing  a  day. 

Sine  qua  non.     An  indispensable  condition. 

Smuggling.  Passing  goods  into  a  country  clandes- 
tinely, to  avoid  paying  duties. 

Solvent.    Able  to  pay  one's  liabilities. 

Specie.  Gold,  silver  or  other  coin  used  as  circulating 
medium. 

Speculation.     Buying  goods  or  lands  in  expectation  ot 

some  future  rise  in  price. 
Staples.    Principal  articles  of  produce  or  manufacture; 

articles  commonly  used. 

Statement.  A  list  of  resources,  liabilities,  etc.;  a  list 
of  particulars. 

Statistics.  A  systematic  statement  of  facts  concerning 
any  department  or  thing. 

Statute.    A  law  enacted  by  a  legislature. 

Stipulation.    That  which  is  stated  or  agreed  upon. 

Stock.  Raw  material  from  which  anything  is  made  ; 
goods  in  store  and  kept  for  sale  ;  funds  employed  in 
business. 

Stock  Exchange.  An  incorporated  body  of  brokers 
who  buy  and  sell  stocks,  bonds,  and  other  values. 

Stockholder.  One  who  owns  shares  of  the  capital  stock 
of  a  corporation. 

Storage.     Charges  for  keeping  goods  in  a  warehouse. 

Sue.     To  bring  action  against  one  in  law. 

Sundries.    Several  things. 

Surety.  One  who  signs  the  bond  of  an  executor  of  a 
will  or  administrator  of  an  estate,  or  bonds  or  notes 
of  any  kind,  for  the  purpose  of  guaranteeing  the  faith- 
ful performance  of  his  duties. 

Suspend.    To  stop  payment ;  to  stop  work  or  business. 

Suspense  Account.  An  account  employed  to  contain 
balances  of  personal  accounts,  which  may  be  consid- 
ered doubtful. 

Syndicate.  A  number  of  capitalists  who  unite  to- 
gether to  dispose  of  a  large  loan,  or  to  conduct  some 
great  financial  enterprise. 

T. 

Tacit.    That  which  is  understood  or  implied. 

Tare.  An  allowance  made  for  the  weight  of  boxes,  bar- 
rels or  wrappings  which  contain  merchandise. 

Tariff.  A  table  of  duties  fixed  by  the  national  law  to 
be  paid  on  merchandise  imported  or  exported. 

Tax.  A  rate  or  amount  imposed  on  persons  or  property 
for  public  purposes. 

Teller.     An  officer  of  a  bank  who  receives  or  pays  money. 

Tender.  The  offer  of  payment  or  satisfaction  of  a  de- 
mand ;  usually  the  offer  of  legal  money,  called  a  legal 
tender,  for  the  payment  of  a  debt. 

Terms.  The  conditions  of  a  sale  as  to  time  and  kind  of 
payment. 

Testator.     A  person  who  has  made  a  will. 

Tickler.  A  book  containing  memoranda  of  notes  and 
debts,  arranged  in  the  order  of  their  maturity. 

Time  Draft.    A  draft  made  payable  at  a  specified  time. 

Tonnage.  The  capacity  of  a  vessel  as  measured  by  the 
weight  of  goods  it  will  carry. 


148 


STEVENSON  S    INTRODUCTORY    BOOKKEEPING. 


Trade.  A  company  of  persons  engaged  in  the  same  oc- 
cupation ;  to  exchange  commodities. 

Trade  Discount.  A  discount  or  series  of  discounts  from 
list  prices,  made  to  dealers,  or  because  of  a  change  in 
prices. 

Trade-mark.  A  distinguishing  mark  used  by  a  manu- 
facturer on  his  goods  to  distinguish  them  from  imita- 
tions. 

Transact.    To  perform,  as  an  act  of  business. 

Transfer.  To  carry  one  account  to  another;  a  legal 
conveyance  of  value ;  to  carry  goods  from  one  place 
to  another. 

Treasury.    A  place  where  public  money  is  kept. 

Treasury  Notes.  Notes  issued  directly  by  the  govern- 
ment, and  legal  tender  for  all  bills. 

Trust.  The  holding  of  property  by  one  for  the  benefit 
of  another  ;  to  give  credit. 

Trustee.  A  person  to  whom  property  is  legally  in- 
trusted. 

u. 

Ultimo.    The  last  month  preceding  the  present. 

Unclaimed  Goods.  Merchandise  remaining  in  the 
government  stores  for  three  years  after  importation, 
or  upon  which  duty  has  not  been  paid  as  prescribed 
by  law. 

Uncurrent.  A  term  applied  to  money  that  does  not 
pass  in  common  payment. 

Undertvriter.  One  who  insures ;  so  called  from  writ- 
ing his  name  under  the  conditions  of  the  policy. 

Usance.  The  time  which  by  custom  is  allowed  for  the 
payment  of  a  bill  of  exchange. 

Usury.  Interest  in  excess  of  the  highest  rate  allowed 
by  law. 

V. 

Valid.  A  term  applied  to  a  contract  that  is  properly 
executed ;  that  is,  legal  or  binding. 


Valuation.     The  estimated  worth  of  anything. 

Value.  The  money  measurement  or  financial  estimate 
of  a  thing. 

Value  Heceived.  A  phrase  of  formality  used  in  notes 
and  drafts  to  indicate  that  a  consideration  has  been 
given. 

Venture.    A  risk ;  speculation. 

Ve7'dicf.     The  decision  of  a  judge  or  jury. 

Void.     Having  no  binding  force. 

Voidable.  Capable  of  being  avoided  or  confirmed,  as 
the  party  chooses. 

Voucher.  A  document  or  paper  proving  that  some 
transaction  occurred  ;  as,  a  receipt  or  a  canceled  note 
is  a  voucher  of  the  payment  of  a  debt. 

w. 

Wages.     Comjjensation  for  service. 

Warehouse.     A  place  to  store  goods. 

Wares.     Goods ;  merchandise. 

Warrant.  To  insure  against  defects ;  authority  given 
to  an  officer  to  arrest  a  person  ;  a  writing  authoriz- 
ing the  holder  to  receive  money. 

Warranty.  An  agreement  to  become  responsible,  if 
certain  facts  do  not  turn  out  as  represented. 

Way-bill.  A  paper  containing  a  list  and  description  of 
goods  sent  by  railroad  or  other  common  cariier. 

Watered  Stock.  Stock  that  has  been  inflated  by  dis- 
tributing among  the  shareholders  extra  shares  for 
which  no  payment  is  required. 

Wharfage.    Money  paid  for  the  use  of  a  wharf. 

Wholesale.  To  sell  goods  in  quantity ;  usually  in  un- 
broken or  whole  packages. 

Without  Recourse.  Not  liable  as  an  indorser  if  written 
over  an  indorser's  signature  or  on  the  back  of  a  com- 
mercial paper. 


GENERAL  LIBRARY 
UNIVERSITY  OF  CALIFORNIA— BERKELEY 

RETURN  TO  DESK  FROM  WHICH  BORROWED 

This  book  is  due  on  the  last  date  stamped  below,  or  on  the 

date  to  which  renewed. 

Renewed  books  are  subject  to  immediate  recall. 


VE  02753 


FEB    7  t955 


I.D  21-100m-l,'54(1887sl6)476 


